Dow pops 1,200 points, S&P 500 jumps 5% in biggest rally in two years after light inflation report
Source: CNBC
Stocks mounted their biggest rally since 2020 after October’s reading of consumer prices raised investor hopes that inflation has peaked.
The Dow Jones Industrial Average jumped 1,201.43 points, or 3.7%, to 33,715.37 for its biggest one-day gain since stocks were emerging from the depths of the pandemic bear market. The S&P 500 jumped 5.54% to 3,956.37 in its biggest rally since April 2020. The Nasdaq Composite surged 7.35%, its best since March 2020, closing at 11,114.15.
October’s consumer price index rose just 0.4% for the month and 7.7% from a year ago, its lowest annual increase since January and a slowdown from the 8.2% annual pace in the prior month. Economists were expecting increases of 0.6% and 7.9%, according to Dow Jones. Excluding volatile food and energy costs, so-called core CPI increased 0.3% for the month and 6.3% on an annual basis, also less than expected.
Treasury yields plunged after the CPI report, with the 10-year Treasury yield falling roughly 30 basis points to 3.824% as traders bet the Federal Reserve would slow its aggressive tightening campaign that’s weighed on markets all year. The yield on the 2-year Treasury dropped more than 29 basis points to 4.332% (1 basis point equals 0.01%). The U.S. Dollar
, another recent pressure point for stocks, tumbled to its worst day since 2009 versus a basket of other currencies.
Read more: https://www.cnbc.com/2022/11/09/stock-market-futures-open-to-close-news.html
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