Stocks mounted their biggest rally since 2020 after October’s reading of consumer prices raised hopes that inflation has peaked.
The Dow Jones Industrial Average jumped more than 1,000 points, or more than 3% for its biggest one-day gain since the market was emerging from the depths of the pandemic bear market. The S&P 500 jumped 4.6% for its biggest one-day rally since April 2020. The Nasdaq Composite surged 6%, also its biggest pop since 2020.
October’s consumer price index rose just 0.4% for the month and 7.7% from a year ago, its lowest annual increase since January and a slowdown from the 8.2% annual pace in the prior month. Economists were expecting increases of 0.6% and 7.9%, according to Dow Jones. Excluding volatile food and energy costs, so-called core CPI increased 0.3% for the month and 6.3% on an annual basis, also less than expected.