U.S. stocks experienced a strong opening on Tuesday, with investors taking into account new data that revealed a more favorable inflation rate for the month of October. As per FactSet data, the Dow Jones Industrial Average (DJIA) rose by 1% immediately after the market opened, while the S&P 500 (SPX) and the Nasdaq Composite (COMP) increased by 1.4% and 1.9% respectively.

According to a report from the U.S. Bureau of Labor Statistics on Tuesday, the consumer-price index remained unchanged last month, compared to a 0.4% increase in September. This figure is significantly lower than the 0.1% inflation forecast for October by economists polled by the Wall Street Journal. The core CPI, which excludes energy and food prices, also experienced a slight deceleration with a 0.2% increase in October.

In terms of year-over-year comparison, the headline inflation rate decelerated to 3.2%, while core CPI slightly eased to 4%. Following the release of this inflation report, Treasury yields began to decline. FactSet data indicates that the rate on the 10-year Treasury note dropped approximately 19 basis points to around 4.43%.

The market's positive reaction to the better than expected inflation data reflects investors' optimism about the state of the economy. It remains to be seen how these trends will evolve in the coming months.

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