U.S. stocks rallied Tuesday after a second government report in as many weeks showed the rate of inflation may be slowing down.

The Dow Jones Industrial Average rose 57.47 points, or 0.17%, to close at 33,594.17. The S&P 500 rose 34.66 points, or 0.88%, to close at 3,991.91, and the Nasdaq Composite rose 162.19 points, or 1.45%, to close at 11,358.41.

The rate of U.S. supplier price increases slowed in October for the second consecutive month, according to the Labor Department's Producer Price Index. The index rose 8% on an annualized basis in October, down from an increase of 8.4% in September and lower than the 11.7% increase in March.

Last week, the October Consumer Price Index showed an increase over the previous year by 7.7%, which was 0.2% lower than forecast and 0.5% lower than September's report.

Some of the stocks that rose Tuesday included Apple (AAPL), which closed at $150.04, down $1.76, or 1.19%. Qualcomm's (QCOM) price of shares rose $5.22, or 4.32%, to close at $126.02.

"The PPI read certainly adds more fuel to the fire for those who feel we may finally be on a downward inflation trend," Mike Loewengart, a Morgan Stanley analyst, told CNBC. "The market embraced last week's consumer downtick and today's initial reaction seems to be more of the same."

Cryptocurrencies also saw gains on Tuesday. Bitcoin climbed 2.81% from its level around 24 hours earlier, while Ripple jumped 5.55%, according to CoinDesk.