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U.S. markets closed
  • S&P 500

    5,137.08
    +40.81 (+0.80%)
     
  • Dow 30

    39,087.38
    +90.99 (+0.23%)
     
  • Nasdaq

    16,274.94
    +183.02 (+1.14%)
     
  • Russell 2000

    2,076.39
    +21.55 (+1.05%)
     
  • Crude Oil

    79.81
    +1.55 (+1.98%)
     
  • Gold

    2,091.60
    +36.90 (+1.80%)
     
  • Silver

    23.25
    +0.58 (+2.58%)
     
  • EUR/USD

    1.0839
    +0.0032 (+0.29%)
     
  • 10-Yr Bond

    4.1800
    -0.0720 (-1.69%)
     
  • GBP/USD

    1.2655
    +0.0029 (+0.23%)
     
  • USD/JPY

    150.0640
    +0.0800 (+0.05%)
     
  • Bitcoin USD

    61,974.23
    -27.42 (-0.04%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,682.50
    +52.48 (+0.69%)
     
  • Nikkei 225

    39,910.82
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This is why the stock market is taking off like a rocket today

This is why the stock market is taking off like a rocket today
happy stock trader
Investors cheered the October CPI report, which showed inflation cooled more than expected last month.THOMAS LOHNES/DDP/AFP/Getty Images
  • US stocks rocketed higher on Tuesday as markets cheered slowing inflation in October.

  • Treasury yields plummeted as result, with the 10-year rate dropping 18 basis points.

  • The soft inflation report reinforced views that the Fed is done hiking rates.

Investors sent stocks soaring on Tuesday, cheering the October Consumer Price Index report that showed inflation slowed more than expected last month.

The Dow Jones Industrial Average soared 565 basis points, while the S&P 500 and Nasdaq 100 both rocketed more than 2%.

The latest CPI report reinforced a potential end to the interest-rate hikes that have hurt growth for over the past year, making a soft landing scenario more likely for the US economy. The odds of a rate hike at the Federal Reserve's December meeting fell from 14% to 0% following the report, according to the CME FedWatch Tool.

"The inflation fever has broken in the United States," Bill Adams, Chief Economist for Comerica Bank reacted, adding: "October's cooler than expected CPI report keeps the Fed on course for rate cuts in 2024."

The inflation report saw prices remain flat in October on a monthly basis versus views for a 0.1% uptick. The annual rate slowed to 3.2%, down from 3.7% in September and below views for 3.3%. Core inflation of 4% also came in below forecasts.

Meanwhile, Treasury yields plunged, with the 10-year rate diving 18 basis points to 4.45%, and the two-year yield plummeting 20 basis points to 4.84%. In prior months, the market has suffered a major sell off as investors worried of further interest rate hikes to come.

"Core CPI came in below expectations with prices lower across the board. This is encouraging for markets and suggests a December hike is off the table," Damanick Dantes, a portfolio strategist at Global X, said.

Here's where US indexes stood at 11:30 a.m. ET on Tuesday:

Here's what else is happening today: 

In commodities, bonds, and crypto: 

  • West Texas Intermediate crude oil rose 0.33% to $78.58 a barrel. Brent crude, the international benchmark, climbed 0.53% to $82.82 a barrel.

  • Gold inched up 0.48% to $1,956.47 per ounce.

  • The 10-year Treasury yield dropped 18 basis points to 4.45%.

  • Bitcoin was essentially flat at $36,542.

Read the original article on Business Insider

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