North American markets rebounded Tuesday as lingering fears over pending interest rate hikes were squelched by economic reports out of the U.S.

In Toronto, the S&P TSX added 97.73 or 1.18%, rising to 8390.24. All of the TSX sectors, except real estate, finished in the black with financials adding 0.70%. Energy issues added 2.06% and metal and mining stocks climbed 2.88%.

The S&P Canadian Venture Exchange was the only loser among the North American markets. It dropped 4.63 or 0.3% to 1522.77.

In New York, the positive economic news was good for U.S. stocks. The Dow Jones industrial average closed up 45.7 points or 0.44% at 10380.43, while the Nasdaq composite index ended up 25.61 points or 1.30% at 1995.60. The Standard & Poor’s 500 index gained 6.72 points or 0.60% at 1132.01.

On Tuesday, the U.S. Commerce Department reported that the consumer price index shot up 0.6% in May, the largest increase in more than three years as prices for food and energy climbed. However, the “core” rate, which excludes volatile energy and food prices, rose only 0.2% in May.

The core rate result matched economist expectations, and raised hope among investors that the U.S. Federal Reserve will not raise interest rates by more than a quarter-point at its next meeting, set for the end of June. The Bank of Canada is scheduled to make its next announcement on interest rates on July 20.