Wall Street surges as S&P 500 soars 4% on cooling inflation
Wall Street soars at the opening bell after inflation eased by even more than expected in October
NEW YORK (AP) — Stocks are bursting toward their best day in years Thursday as exhilaration sweeps Wall Street and financial markets worldwide after a report showed inflation in the United States slowed last month by even more than expected.
The S&P 500 was 4.1% higher in morning trading, and the encouraging data also sent prices leaping in markets for everything from metals to European stocks. Even bitcoin clawed back some of its steep plunge from prior days caused by the crypto industry's latest crisis of confidence.
The Dow Jones Industrial Average was up 852 points, or 2.6%, at 33,366, as of 10:44 a.m. Eastern time, while the Nasdaq composite soared 5.5%. Investors took the data as a sign that the worst of high inflation may finally be behind us, though analysts cautioned it was still premature to declare victory.
The most dramatic action may be happening in the bond market, where Treasury yields sank sharply as investors pared bets for how aggressive the Federal Reserve will be in hiking interest rates to get inflation under control. Big rate hikes by the Fed have been the main reason for Wall Street's struggles this year and are threatening a recession.
