Dow surges nearly 900 points as investors cheer after October consumer prices fell more than Wall Street expected.
The S&P 500 jumped 156 points, or 4%, to 3,905 as of 10:31 a.m. Eastern. The Dow rose 872 points, or 3%, to 33, 385 and the tech-heavy Nasdaq surged 5.6%. Treasury yields fell dramatically as bond markets relaxed.
All the moves stemmed from the consumer price index showing that inflation slowed to 7.7% last month, from 8.2% in September. It's the fourth straight month of moderation since inflation hit a peak of 9.1% in June, and it was an even better reading than the 8% that economists were expecting.Inflation also slowed more than expected after ignoring the effects of food and energy prices. That's the measure that the Fed pays closer attention to. So did inflation between September and October.
"The Fed is still on track to increase the fed funds rate by 0.50% on December 14," Jeffrey Roach, chief economist for LPL Financial, said in an email."However, in the near term, investors should respond favorably to these encouraging moves in consumer prices." One of the reasons the Fed has been so aggressive about hiking rates is because it wants avoid a debilitating cycle where expectations for high inflation push people to change their behaviors in ways that lead to even higher inflation.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CPI Report Live Updates: Dow Gains 800 Points as Inflation Eased to 7.7% in OctoberThe Dow rose 800 points after data showed inflation eased
Read more »
Wall Street rallies on US midterm election implications and Fed outlookFollowing a bullish session in Asia, with the Japanese index Nikkei 225 (JP225) reaching its highest level since the 15th of September at around 27,86
Read more »
Wall Street rises as investors eye midterm U.S. elections By Reuters*STOCKS JUMP MORE THAN 1% AS WALL ST. AWAITS MIDTERM ELECTION RESULTS - $DIA $SPY $QQQ 🇺🇸 🇺🇸
Read more »
Wall Street rises ahead of election results, inflation dataElection Day is bringing another tick higher for stocks, as Wall Street braces for the results from the day’s midterm elections and a big update on inflation that’s due later in the wee…
Read more »
Wall Street rises ahead of election results, inflation dataElection Day brought another tick higher for stocks on Tuesday as Wall Street braced for the results of the day’s midterm elections and a big update on inflation due later in the week.
Read more »