U.S. stocks posted outsized gains Thursday, logging their biggest one-day climb in two years, as Wall Street cheered lighter-than-expected inflation data and monitored midterm election tallies.
The Consumer Price Index (CPI) for October reflected a 7.7% increase over last year and 0.4% increase over the prior month, better than Wall Street expected. Economists surveyed by Bloomberg called for a 7.9% annual rise and 0.5% monthly gain.
The S&P 500 (^GSPC) rallied 5.5% — its biggest intraday gain since April 2020 — while the Dow Jones Industrial Average (^DJI) jumped 1,200 points, or 3.7%, the most since May 2020. The technology-heavy Nasdaq Composite (^IXIC) advanced a whopping 7.4%, its sharpest climb since emerging from the pandemic crash in March 2020. Meanwhile, Treasury yields tumbled following the report, with the benchmark 10-year note falling well below the 4% level.
Moderations in the data again fueled bets that the Federal Reserve may ease the pace of its monetary tightening campaign, with investors shrugging off Chair Jerome Powell's assertion earlier this month that a policy shift is not imminent. Remarks by Federal Reserve Bank of Philadelphia President Patrick Harker also suggested Thursday that officials may be nearing a pause, though other officials stressed the need for continued hikes, even if at a slower pace.
Sharp gains were seen across technology stocks, with Apple (AAPL) and Microsoft Corporation (MSFT) each up more than 8%. Amazon (AMZN) shares surged 12%, Facebook parent Meta (META) 10% — placing the stock on track for its biggest weekly gain since July 2013 — and Nvidia (NVDA) 14%.
The stocks added roughly $400 billion in market capitalization combined on Thursday, according to Bloomberg data.
"The first downside surprise in inflation in several months will inevitably be received by an equity market ovation," Principal Asset Management Chief Global Strategist Seema Shah said in a note, adding however that Federal Reserve officials remain on pace to proceed with rate increases and a pause is still elusive.
"Let the market enjoy today, it still has another 100 basis points or so of tightening to commiserate," she said.
Elsewhere in economic data — in the shadow of CPI — filings for unemployment insurance rose last week but held near historic lows. Initial jobless claims, the most timely snapshot of the labor market, came in at 225,000, a 7,000 increase from the prior week, Labor Department data showed.
Thursday's market moves come after each of the major averages slid at least 2% in the previous session over midterm election uncertainty.
Republicans appeared poised to take control of the House but did not sweep polls at the extent anticipated, undermining optimism over the market-friendly gridlock investors anticipated.
Even as Wall Street awaits political clarity, with vote counting still underway, GLOBALT Investments vice president and senior portfolio manager Thomas Martin argued that markets are laser focused now on only one thing: the effect of central bank tightening on inflation.
“So far, the effects seem to be not all that appreciably different from zero,” he said in a note late Wednesday. “Yes, there have been data points hinting at the easing of some prices, but they haven’t been able to muster sustainable momentum.”
Until the latest policy-setting meeting earlier this month, traders hoped Federal Reserve officials would ease their monetary tightening plans as economic data softens. But Chair Jerome Powell pushed back against the notion that a shift in the Fed’s path is imminent, with inflation and payrolls still firmly elevated — the latter, still far below the Fed's goal of 2% despite October's decline.
Prior to Wednesday's rebound, renewed risk-off sentiment on Wednesday was also stoked by the fast collapse of FTX, the cryptocurrency exchange run by billionaire Sam Bankman-Fried. Concerns over the possibility of insolvency for FTX after rival Binance walked back on an emergency rescue deal to buy the firm wreaked havoc on crypto markets, with jitters pouring over into other risk assets. Bitcoin (BTC-USD) hovered around $16,300 Thursday morning.
In earnings news, shares of Nio (NIO) rallied 12% after the Chinese electric carmaker reported a jump in third-quarter revenue and forecasted strong production.
South Korean e-commerce Coupang (CPNG) saw its stock gain 23% after posting its first on-record operating profit.
ZipRecruiter (ZIP) shares jumped 16% after the online employment marketplace raised its full-year outlook and greenlighted a $200 million increase to its share repurchase program.
Shares of Bumble (BMBL) rose 10% after reversing a pre-market decline of 15% despite unveiling third-quarter revenue that missed Wall Street estimates and downwardly revised guidance for the current period over currency headwinds and Russia’s war in Ukraine.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
Upstart Holdings (NASDAQ: UPST) and Block (NYSE: SQ) are fintech stocks that investors loved in 2021 and have been down more than 70% over the past year. In fact, Upstart is down 91%, meaning that if you invested $100 in the stock a year ago, you'd have less than $10 left today. Upstart is an artificial intelligence (AI) lending platform that helps financial institutions price loans for consumers.
And Biden has set his sights on the top 1%.
Keep an eye on the drop in bond yields for clues to the stock market’s future. One market strategist sees the S&P 500 hitting 5000 next year.
‘Both are insistent that I'm taking money that is morally theirs. There's no changing their mind.’
Many preferred issues yield 6% or more and offer investors good dividend security since they are a senior form of equity.
(Bloomberg) — The bond market is zeroing in on a US recession next year, with traders betting that the longer-term trajectory for interest rates will be down even as the Federal Reserve is still busy raising its policy rate.Most Read from BloombergNext Covid-19 Strain May be More Dangerous, Lab Study ShowsUS Shoppers Kick Off Holiday Season With a Muted Black FridayTiantian Kullander, Co-Founder of Crypto Firm Amber, Dies at 30At Nantucket Retreat, Biden Family Weighs Run for Second TermChevron
Over the last 10 years his Berkshire Hathaway stock returned 13.6% annualized, just topping the S&P 500.
These companies are about as different as two businesses can be, but they have one thing in common. Both stocks are incredibly cheap and no-brainer buys these days.
Many Americans are surprised to see they have not prepared as well as they had hoped for retirement when they finally get ready to call it quits. The bad news is, you’ll probably have to make some realistic assumptions of what your retirement will look like. If you’ve lived primarily paycheck to paycheck in your working years, that may continue to feel the case in your retirement.
Whether you're an experienced investor with decades of stock-picking expertise or a brand-new participant in the market, 2022 has been a tough year. The S&P 500 index is down by 16% year-to-date. That's one of the sharpest market drops in decades, exceeded only by truly historic events: the Black Monday crash of 1987, the popping of the dot-com bubble in 2001 and 2002, and the 2008 subprime mortgage meltdown.
Shopping malls and retail strip centers have been declining for many years. How many empty spaces did you see in your local mall the last time you visited? Have you seen any new malls or strip centers being constructed recently? Main streets across America have also had vacant storefronts for a long period of time. Because of pandemic lockdowns and the ease of shopping online, the death of brick-and-mortar retail has accelerated. Also, because of recent COVID restrictions, folks have become used
The Dow Jones hit its best level since April while more stocks are near buy points. But the S&P 500 faces a big test with Fed-critical economic data on tap.
Turkey’s Financial Crimes Investigation Board has seized assets belonging to the local subsidiary of the FTX crypto exchange and its affiliates.
In this article, we discuss the 10 best Roth IRA stocks to buy according to hedge funds. If you want to see more stocks in this selection, go directly to the 5 Best Roth IRA Stocks To Buy According To Hedge Funds. A Roth individual retirement account (IRA) allows you to contribute after-tax dollars into […]
General Electric Company ( NYSE:GE ) insiders who bought shares over the past year were rewarded handsomely last week…
Despite the vast depth of information and education available today, financial literacy isn't improving among adults in the U.S. A financial advisor can help you improve your financial literacy to better understand your money. Find a fiduciary advisor today. On average, … Continue reading → The post 23% of Adults Got Three-Quarters of Financial Literacy Questions Wrong: Can You Get Them Right? appeared first on SmartAsset Blog.
A big show of confidence by the CEO has investors feeling better about the electric vehicle start-up.
The sector has taken a beating in 2022 as rising interest rates have compressed valuations, and fears of a recession are weighing on growth rates. Gitlab (NASDAQ: GTLB), which went public a little more than a year ago, offers companies a single platform for DevOps — the tools businesses need to build and deploy software quickly. While Gitlab is unprofitable, its margins are improving, and its gross margins are among the best in the software industry, with an adjusted gross margin of 89% in its most recently reported quarter, which ended July 31.
Don’t run out of your savings at the wrong time.
Joe Rosenberg’s relationship with Barron’s goes back to 1963, when he wrote a bullish article on Trans World Airlines that resulted in a pop in the stock. Rosenberg, 89, spent much of his career at Loews (L), the conglomerate run by the Tisch family, as chief investment officer and then chief investment strategist. Rosenberg has been interviewed many times by Barron’s and has made some prescient calls.


Leave a Reply

Your email address will not be published. Required fields are marked *