Thursday's rally marked the best day for broader markets since stocks came up for air in 2020 after facing significant selling pressure on pandemic concerns. The indices raced higher Thursday morning after October CPI data showed inflation was cooler than expected.
What To Know: Thursday's CPI inflation reading came a week after the Federal Reserve raised its benchmark rate by 0.75% for the fourth straight time as it continues to grapple with high inflation.
The Fed's rate increases are expected to eventually slow the economy and pressure consumer spending. Thursday's data seemed to show that Fed policy actions are starting to rattle economic conditions.
As a result, many are now anticipating a Fed pivot at the central bank's next meeting on Dec. 14, which acted as the main catalyst for Thursday's move.
Historic Surge In Stocks: The Nasdaq 100 led the charge higher Thursday, closing up 7.49% at 11,605.96. Ninety-eight of the stocks in the Nasdaq 100 closed the day in the green. The Nasdaq Composite surged 7.35% to end the day at 11,114.15.
One of the oldest and best-known measures of stock market performance, the Dow Jones Industrial Average, is a price-weighted index consisting of 30 stocks. The blue-chip index closed up more than 1,200 points, or 3.7%, at 33,715.37 on Thursday.
The S&P 500 rallied 5.54% to 3,956.37 and the SPDR S&P 500 SPY, an ETF that tracks the S&P 500 index, closed up 5.49% at $394.66.
What's Next: The Fed will get to see one more CPI print before its final meeting of the year in mid-December. Thursday's cooler-than-expected CPI data suggests the Fed could opt for a less aggressive 0.5% or 0.25% rate hike next month.
See Also: Here''s What Experts Are Expecting From The Fed Next Month
Photo: Brigitte Werner from Pixabay.
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