NEW YORK, New York - U.S. stocks rallied sharply on Tuesday after a crucial CPI number came in as flat, against expectations for a 0.01 percent month on month increase.

"There's optimism that inflation is cooling to a level where the Federal Reserve can take its foot off the brake," Keith Buchanan, portfolio manager at Globalt Investments told CNBC Tuesday.

S&P 500 (^GSPC): The S&P 500 closed at 4,503.59 Tuesday, registering a robust increase of 92.04 points, or 2.09 percent.

Dow Jones Industrial Average (^DJI): The Dow Jones Industrial Average soared to 34,894.14, marking a significant gain of 556.27 points, or 1.62 percent.

NASDAQ Composite (^IXIC): The tech-heavy NASDAQ Composite showcased remarkable strength, closing at 14,103.36. The index recorded an impressive gain of 335.62 points, or 2.44 percent.

Global Foreign Exchange Market Report: U.S. Dollar in Massive Sell-Off

Despite only a fractional variation of the CPI Tuesday, the U.S. dollar came under huge selling pressure, as the yield on the 10-year Treasury dropped below 4.5 percent.

EUR/USD (Euro / US Dollar): The euro made gains jumped sharply, with the EUR/USD pair reaching 1.0880. This marked an increase of 1.70 percent or 0.0181.

USD/JPY (US Dollar / Japanese Yen): The Japanese Yen accelerated to 150.35. This represented a gain of 0.90 percent or 1.36.

USD/CAD (US Dollar / Canadian Dollar): The Canadian Dollar's in demand, swelling to 1.3700 Tuesday. This indicated an increase of 0.70 percent or 0.0096.

GBP/USD (British Pound / US Dollar): The British pound gained ground against the U.S. dollar, settling at 1.2497. This reflected an increase of a hefty 1.78 percent or 0.0218.

USD/CHF (US Dollar / Swiss Franc): The Swiss Franc jumped to 0.8890. This marked a gain of 1.39 percent or 0.0125.

AUD/USD (Australian Dollar / US Dollar): The Australian dollar showed strength rising to 0.6507 Tuesday. This represented a notable increase of 2.05 percent or 0.0131.

NZD/USD (New Zealand Dollar / US Dollar): The New Zealand dollar also exhibited strength rising to 0.6009. This marked a substantial increase of 2.27 percent.

Global Stock Markets Close Sharply Higher on Tuesday

Here's a snapshot of the latest world stock market quotes for Tuesday:

CANADA

S&P/TSX Composite Index (^GSPTSE): Canada's S&P/TSX Composite index closed at 20,056.02, reflecting a substantial gain of 346.87 points, or 1.76 percent. The Canadian market experienced positive movements across various sectors.

UNITED KINGDOM

FTSE 100 (FTSE): The FTSE 100 index in London closed at 7,440.47, marking a positive move with an increase of 14.64 points, or 0.20 percent.

EUROPE

DAX PERFORMANCE-INDEX (^GDAXI): The German DAX index, represented by ^GDAXI, experienced a robust surge, closing at 15,614.43. It gained 269.43 points, or 1.76 percent.

CAC 40 (^FCHI): France's CAC 40 index (^FCHI) rose by 98.62 points, or 1.39 percent Tuesday, closing at 7,185.68.

ESTX 50 PR.EUR (^STOXX50E): The ESTX 50 PR.EUR index (^STOXX50E) closed at 4,291.72, showing a positive movement of 59.53 points, or 1.41 percent.

Euronext 100 Index (^N100): The Euronext 100 Index (^N100) closed at 1,342.78, gaining 13.72 points, or 1.03 percent.

BEL 20 (^BFX): Belgium's BEL 20 index (^BFX) exhibited strong performance, closing at 3,507.47. It gained 61.91 points, or 1.80 percent.

RUSSIA

MOEX Russia Index (IMOEX.ME): The MOEX Russia Index (IMOEX.ME) faced a slight dip, closing at 2,222.51. It lost 4.14 points, or 0.19 percent.

ASIA

Nikkei 225 (^N225): The Nikkei 225 index in Japan on Tuesday closed at 32,695.93, marking a modest gain of 110.82 points, or 0.34 percent.

HANG SENG INDEX (^HSI): Hong Kong's Hang Seng Index (^HSI) faced a minor setback, closing at 17,396.86. It recorded a decrease of 29.35 points, or 0.17 percent.

SSE Composite Index (000001.SS): China's SSE Composite Index (000001.SS) showcased resilience, closing at 3,056.07. It saw an uptick of 9.54 points, or 0.31 percent.

Shenzhen Index (399001.SZ): The Shenzhen Index (399001.SZ) also posted a positive performance, closing at 10,005.56 with a gain of 16.73 points, or 0.17 percent.

STI Index (^STI): Singapore's STI Index (^STI) experienced a marginal decline Tuesday, closing at 3,104.66. It lost 2.02 points, or 0.07 percent.

S&P BSE SENSEX (^BSESN): India's S&P BSE SENSEX index (^BSESN) faced a slight dip, closing at 64,933.87. It lost 325.58 points, or 0.50 percent.

NIFTY 50 (^NSEI): India's NIFTY 50 index (^NSEI) closed at 19,443.55, recording a decrease of 82.00 points, or 0.42 percent.

IDX COMPOSITE (^JKSE): Indonesia's IDX COMPOSITE index (^JKSE) closed at 6,862.06, marking a gain of 23.74 points, or 0.35 percent.

FTSE Bursa Malaysia KLCI (^KLSE): The FTSE Bursa Malaysia KLCI index (^KLSE) closed at 1,451.72 Tuesday, recording a gain of 6.54 points, or 0.45 percent.

KOSPI Composite Index (^KS11): South Korea's KOSPI Composite Index (^KS11) closed at 2,433.25, recording a gain of 29.49 points, or 1.23 percent.

TSEC weighted index (^TWII): Taiwan's TSEC weighted index (^TWII) closed at 16,915.71, marking a gain of 76.42 points, or 0.45 percent.

OCEANIA

S&P/ASX 200 (^AXJO): Australia's S&P/ASX 200 index (^AXJO) climbed higher, closing at 7,006.70. It gained 57.90 points, or 0.83 percent.

ALL ORDINARIES (^AORD): Meanwhile the Australian ALL ORDINARIES index (^AORD) closed at 7,207.10, recording a gain of 62.10 points, or 0.87 percent.

S&P/NZX 50 INDEX GROSS (^NZ50): New Zealand's S&P/NZX 50 INDEX GROSS (^NZ50) closed at 11,173.28 Tuesday, gaining 80.25 points, or 0.72 percent.

AFRICA

Top 40 USD Net TRI Index (^JN0U.JO): The Top 40 USD Net TRI Index (^JN0U.JO) experienced significant growth, closing at 3,936.47. It surged by 169.28 points, or an impressive 4.49 percent.

MIDDLE EAST

TA-125 (^TA125.TA): Israel's TA-125 index (^TA125.TA) displayed strong growth Tuesday, closing at 1,719.15. It gained 34.79 points, or 2.07 percent.

EGX 30 Price Return Index (^CASE30): Egypt's EGX 30 Price Return Index (^CASE30) closed at 23,894.10, facing a slight dip of 60.90 points, or 0.25 percent. The trading volume stood at 298.908 million.