Stocks surge as investors cheer on cooler CPI data
U.S. stocks rallied Wednesday as Wall Street breathed a sigh of relief over a lower-than expected inflation reading for July.
The benchmark S&P 500 jumped 1.7%, while the Dow Jones Industrial Average surged 500 points, or about 1.6%. The tech-heavy Nasdaq Composite gained 2.1%.
July's CPI report showed prices moderated last month, giving hope to investors that Federal Reserve policymakers may scale back the magnitude of interest rate hikes.
Data from the Bureau of Labor Statistics indicated prices paid by consumers rose 8.5% last month over the year, reflecting a moderation from June's 40-year high of 9.1%. Consensus economists were expecting last month's reading to show an 8.7% increase, according to estimates compiled by Bloomberg.
"This is a step in the right direction but keep in mind we have many miles ahead of us before inflation normalizes," Mike Loewengart, managing director of investment strategy at Morgan Stanley's E*TRADE said in an emailed note. "One month’s data point does not make a trend, however, so cautious optimism is likely the name of the game."
https://www.google.com/amp/s/financ...ws-live-updates-august-10-2022-114314128.html
U.S. stocks rallied Wednesday as Wall Street breathed a sigh of relief over a lower-than expected inflation reading for July.
The benchmark S&P 500 jumped 1.7%, while the Dow Jones Industrial Average surged 500 points, or about 1.6%. The tech-heavy Nasdaq Composite gained 2.1%.
July's CPI report showed prices moderated last month, giving hope to investors that Federal Reserve policymakers may scale back the magnitude of interest rate hikes.
Data from the Bureau of Labor Statistics indicated prices paid by consumers rose 8.5% last month over the year, reflecting a moderation from June's 40-year high of 9.1%. Consensus economists were expecting last month's reading to show an 8.7% increase, according to estimates compiled by Bloomberg.
"This is a step in the right direction but keep in mind we have many miles ahead of us before inflation normalizes," Mike Loewengart, managing director of investment strategy at Morgan Stanley's E*TRADE said in an emailed note. "One month’s data point does not make a trend, however, so cautious optimism is likely the name of the game."
https://www.google.com/amp/s/financ...ws-live-updates-august-10-2022-114314128.html