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U.S. stocks jump after October inflation rate sparks hope of smaller rate hikes

Stock Markets Nov 10, 2022 10:29AM ET
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By Liz Moyer

Investing.com -- U.S. stocks were rising after data indicated inflation has slowed since hitting a peak earlier this year, fueling hope the Federal Reserve will ease up on its interest rate increases.

At 10:24 ET (15:24 GMT), the Dow Jones Industrial Average was up 870 points or 2.7%, while the S&P 500 was up 4.1% and the NASDAQ Composite was up 5.7%.

The October report from the Labor Department said the consumer price index rose 7.7% in the year through last month, down from the 8.2% gain in September. On a core basis, excluding food and energy, prices rose 6.3% over the last year, down from 6.6% in the year through September.

The report was better than expected. Analysts had forecast an annual growth rate of 8% and 6.5%. That top-line inflation has fallen for four months from a peak of 9.1% in June, and is the lowest rate since January.

The Fed has been raising its benchmark rate to tame inflation. After four consecutive increases of 0.75 percentage points each, the Fed could decide to raise rates by a slower half-percentage point at its next meeting in November. That expectation, which is growing among traders, could fuel a rally in growth stocks.

Benchmark Treasury yields fell after the report. The 10-year yield fell below 4%, to 3.85%, while the yield on the 2-year fell to 4.31%. Meanwhile, shares of tech companies jumped. Apple Inc (NASDAQ:AAPL) stock was up 6.3%, while chip maker NVIDIA Corporation (NASDAQ:NVDA) shares rose 8.2%.

Tapestry Inc (NYSE:TPR) beat expectations for earnings and revenue but lowered its forecast for the full year, citing foreign exchange effects. Shares of the parent of Coach and Kate Spade rose 4.8%.

Oil turned higher. Crude Oil WTI Futures rose 0.6%, to $86.36 a barrel, while Brent Oil Futures crude rose 0.9% to $93.53 a barrel. Gold Futures rose 2.3% to $1,753.

U.S. stocks jump after October inflation rate sparks hope of smaller rate hikes
 

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Comments (8)
Maximus Maximus
Maximus Maximus Nov 10, 2022 2:16PM ET
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Red wave did not happen because the US and the Democrats are doing extremely well in this time, compared to almost any other country. Smart people know that.
William Bicknell
William Bicknell Nov 10, 2022 2:16PM ET
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wow. the programming is real.
William Bicknell
William Bicknell Nov 10, 2022 2:16PM ET
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that's like saying they are the best looking ******in the sewer.
William Bicknell
William Bicknell Nov 10, 2022 2:16PM ET
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tu*rd is censored.. what a joke. we are doomed. mostly because of jokes like you who think our slave masters actually want what's best for us.
Casador Del Oso
Casador Del Oso Nov 10, 2022 10:49AM ET
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For the most part, prices will NEVER go down unless we have deflation. So the outrageous prices we are paying for consumer goods are now inflating only slightly less.
Steven ML
Steven ML Nov 10, 2022 10:49AM ET
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Spot on! And in one year time we will be told that we are less than 2% above October 2022 price levels, so inflation levels are back to normal. They are just re-baselining inflation levels at the cost of consumers
Anne Miller
Anne Miller Nov 10, 2022 10:49AM ET
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Wow i didnt see it at this angle, thanks for explaining to me why everything is still more expensive than pre pandemic despite their improving inflation numbers !
Steven ML
Steven ML Nov 10, 2022 10:44AM ET
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Based on this jump I can conclude smaller rate hikes are now priced? Isn't this how it works?
Klaus Mittwoch
Klaus Mittwoch Nov 10, 2022 10:40AM ET
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If inflation goes down, why stock is going up? Inflation down means recession is comming to town.
Casador Del Oso
Casador Del Oso Nov 10, 2022 10:27AM ET
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Even with all the good news...Yield curve inversion still in effect 3MO yield 4.1598% 10 YR yield 3.854% LOOK OUT BELOW!
Bruno Diaz
Bruno Diaz Nov 10, 2022 10:27AM ET
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This is actually bad News, Economy Slowing Down, Lot of people Fired, even if Fed turning Dovish that Won't recover those jobs and companies won't take more credits because they see the coming economic situation for next months...
Mike Hawk
Mike Hawk Nov 10, 2022 10:18AM ET
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If the fed goes back to easing, we will see a total collapse of the dollar and hyperinflation
ochep vanhauten
ochep vanhauten Nov 10, 2022 10:18AM ET
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Artinya apakah gold akan turun
Stan Smith
Stan Smith Nov 10, 2022 10:15AM ET
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Hope is back on the table. No hope for the economy though...mass layoffs coming!
 
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