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The Dow Jones soared 850 points as October CPI showed an unexpected slowdown in inflation. Four stocks boosted the Dow by more than 400 points, plus the latest financial news.
The stock market soared on Thursday, with the NASDAQ composite leading the biggest rise, climbing 5.7 percent. The S&P 500 rose 3.9 percent, while the Dow Jones industrial average gained 3.9 percent, Investor’s Business Daily reported.
The benchmark 10-year Treasury note yield plunged more than 30 basis points to 3.84%. Crude oil prices dropped 1 percent to $85 per barrel.
Among blue-chip stocks rising were Amazon climbing over 8%, and Apple, up 5%.
Shares of electric-vehicle maker Rivian Automotive jumped 17% after beating earnings views while narrowly missing analysts’ sales estimates.
AstraZeneca rose more than 7% after beating sales and earnings estimates.
Tesla reduced a four-day losing streak, trading up 6.6%.
Signs that the Federal Reserve’s aggressive moves on inflation with a series of interest rate hikes may be paying off with the latest inflation with The US Bureau of Labor Statistics released its latest report for the Consumer Price Index on Thursday at a lower-than-expected number of a 7.7% rise in inflation year-over-year ending in October. Economists had projected an annual 7.9% rise and 0.5% month-over-month increase, according to Bloomberg.
“Core” inflation, which strips out food and energy, prices rose 6.3% year-over-year and 0.3% over October, Yahoo reported. This was below the analysts’ expected 6.5% annual and 0.5% monthly increase.
Additionally, the report noted that “the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in October on a seasonally adjusted basis, the same increase as in September.”
“The index for shelter contributed over half of the monthly all items increase, with the indexes for gasoline and food also increasing,” the report said. “The energy index increased 1.8 percent over the month as the gasoline index and the electricity index rose, but the natural gas index decreased. The food index increased 0.6 percent over the month with the food at home index rising 0.4 percent.”
“The index for all items less food and energy rose 0.3 percent in October, after rising 0.6 percent in September,” the report added.
Shares of four stocks alone were responsible for adding over 400 points to the Dow Jones Industrial Average, each of which saw price gains of more than $10, MarketWatch reported.
The biggest gain came from shares of Home Depot, up $24.01, or 8.4%, to add 158 points to the Dow’s price. Next was Microsoft, rising $13.78, or 6.1%, to provide a 91-point lift. Goldman Sachs rose to $11.93, or 3.3%, for a 79-point boost. Salesforce climbed $11.25, or 7.9%, adding 74 points. All combined, these four stocks had added 402 points to the Dow on Thursday.
