Stocks rose on Thursday after a reading on consumer prices in October raised hopes that inflation had peaked.
The Dow Jones industrial average rose 764 points, or 2.3%. The S&P 500 rose 3.7%, while the Nasdaq composite rose 5%.
The Consumer Price Index, the broad-based cost of goods and services, Up just 0.4% 7.7% for the month and one year ago. This was its lowest annual increase since January. According to Dow Jones, economists had expected an increase of between 0.6% and 7.9%. Excluding volatile food and energy costs, the so-called core CPI rose 0.3% month-on-month and 6.3% on an annual basis, which was less than expected.
“It certainly shows how important, concerned and willing the markets are to run on CPI if you get any help here,” NatWest’s John Briggs said. “It only brings up the idea of peak inflation, a peak Fed… the Fed will slow and peak rather than aggressively raise by 75 basis points at a time.”
Treasury yields The CBI fell after the report, the 10-year Treasury yield fell more than 18 basis points to 3.946%, falling below the key 4% level. The 2-year Treasury yield fell over 23 basis points to 4.395%.
Tech stocks, which have been hit hard this year by rising inflation and rates, made gains in early trading. Nvidia And Tesla rose 7.5% and 5.7% respectively. Salesforce 7% up. Apple 5% earned.
Semiconductor stocks rallied along with stocks Lam Research And Utility items Above 5% each. KLA rose 3.7%.
Thursday’s advance reignited a comeback rally that began in mid-October but stalled in recent weeks. The Dow hit its highest since August on Thursday and the S&P 500 neared the 3,900 level, which is key resistance for the market.
