U.S. stocks rose after inflation data met expectations, fueling hopes for a smaller interest rate increase by the Federal Reserve next week.

The S&P 500 increased by 1.9%, the NASDAQ Composite increased by 2.2%, and the Dow Jones Industrial Average increased by 434 points, or 1.4%, at 10:42 ET (14:42 GMT).

According to the Bureau of Labor Statistics, the consumer price index increased by 0.4% in February compared to January, a minor decrease from the previous month’s estimate. Furthermore, slowing from the previous figure, inflation increased 6% annually. Core prices, which do not include food and gasoline, increased by 0.5% from the previous month, slightly higher than anticipated.

According to CME’s FedWatch tool, most futures traders anticipate a quarter-point rate hike next week, however, 15% of traders are betting on the Fed to suspend rate hikes. Expectations for a half-point rate increase peaked only last week.

The weekend failure of Silicon Valley Bank, which sent bank stock prices down amid concerns of a larger contagion, is another factor boosting hopes for a less aggressive Fed. Authorities have intervened to protect the depositors of the similarly shuttered SVB and Signature Bank.

Large regional bank shares fell on Monday but rose on Tuesday. In early trade, KeyCorp (NYSE:KEY) saw a 15% increase. PacWest Bancorp (NASDAQ:PACW) increased by 52% while Comerica Inc (NYSE:CMA) gained 11%. NYSE:First FRC’s Republic Bank had a 57% increase.

Meta Platforms Inc (NASDAQ:META), which is laying off an additional 10,000 employees and potentially spending $5 billion in costs, has warned about the likelihood that the current state of the economy will not improve anytime soon. Shares increased 5%.

The decision by a California appeals court to allow businesses to treat employees as independent contractors increased the value of the ride-hailing services Uber Technologies and Lyft as well as the delivery company DoorDash (NYSE:DASH).

Oil prices dropped. Brent Oil Futures dropped 1.1% to $79.88 a barrel, Gold Futures down 0.3% to $1909, while Crude Oil WTI Futures fell 1.4% to $73.77 a barrel.