Stocks roared higher Thursday after new inflation data showed prices growing far slower than economists expected in October.
Wall Street saw its best single day of stock gains since April 2020 as investors found new confidence in an inflation slowdown.
The Dow Jones Industrial Average closed with a gain of 1,198 points shortly Thursday, rising 3.7 percent on the day. The S&P 500 index rallied 5.6 percent higher and the Nasdaq composite soared a staggering 7.3 percent from its Wednesday close.
Stocks ripped higher on the opening bell after consumer price index (CPI) data released by the Labor Department showed prices rising 7.7 percent over the past 12 months and 0.4 percent in October alone. That’s notably below the 7.9 percent annual inflation rate and 0.6 percent monthly increase in prices economists had projected before Thursday’s report.
Wall Street appeared hopeful that the October inflation decline would push the Federal Reserve to slow down its interest rate hikes, which are meant to slow the economy into lower inflation.
A steady decline in inflation may allow the Fed to raise rates slower and to a lower point than officials currently expect, which may keep the U.S. from hitting a recession.
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#BREAKING: Dow surges 1,200 points as inflation slowdown fuels Wall Street rally https://t.co/khxATrFeAa pic.twitter.com/9ABJJ3a3g8
— The Hill (@thehill) November 10, 2022
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