The Nasdaq, where technology stocks are concentrated, led the rise, gaining 2.19%. The Dow Jones gained 1.00% to 33,093.34 points and the S&P 500 advanced 1.31% to 4,205.45 points.
The PCE index, the Fed's preferred measure of price increases, rose 4.4 percent year-on-year from 4.2 percent the previous month. The underlying index, which excludes sectors with volatile food and energy prices, accelerated to 4.7%.