The U.S. Stock Market Soared Today in Response to the Better-Than-Expected October Inflation Report
U.S. Markets rallied in a big way, posting their biggest single-day gains since 2020, with the NASDAQ, S&P 500 and DOW jumping 7.3%, 5.5% and 3.7%, respectively.
The newly released Consumer Price Index (CPI) report, used as a gauge to track inflation, increased 0.4% month-over-month and 7.7% from last year. The inflation data marks its lowest yearly increase since January 2022 and a deceleration of last month’s 8.2%. According to Dow Jones, economists projected a rise of 0.6% and 7.9%.
Tim Courtney of Exencial Wealth commented on today’s CPI report, stating:
“Interest rates are still running everything in markets. With today’s CPI number coming down, the market is now betting pretty clearly that they think the interest rate [rises] are coming close to an end. So, you see those interest rate sensitive stocks doing really, really well.”
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Markets responded positively to the new CPI report, with investors betting heavily that the better-than-expected inflation data is a sign that Inflation is cooling and the Federal Reserve will begin to pull back on its aggressive interest rate hike strategy.
The NASDAQ Composite (NASX), S&P 500 (SPX) and Dow Jones (DJIA) had their best day in two years, rising +7.3%, +5.5% and +3.7%, respectively. Tech stocks, which rising inflation has hit the hardest, soared back to life today, with top names such as Amazon (NASDAQ: AMZN) +12%, Meta (NASDAQ: META) +10%, Microsoft (NASDAQ: MSFT) +8%, Apple (NASDAQ: AAPL) +8% and Tesla (NASDAQ: TSLA) +7% leading the charge.
Learn more about Amazon: Website | Investor Deck | AMZN Chart
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