The S&P 500 and Nasdaq stayed on the path to their largest daily percentage gain after April 2020. The latest consumer price data inspired investors to worry that ongoing interest rate hikes could limp the U.S. economy.
One-time Wall Street darlings impaired in 2022’s bear market were among Thursday’s most powerful performers, with Nvidia (NASDAQ: NVDA) streaming over 11%, Meta Platforms leaping nearly 8%, and Alphabet (NASDAQ: GOOGL) up more than 6%.
The Labor Department’s data revealed that price pressures might be beginning to subside, with the yearly CPI number beneath 8% for the first time in eight months.
Advancing recession fears have hit Wall Street this year. The S&P 500 stays down nearly 18% year to date, and it is en route to its biggest yearly drop since 2008.
The inflation data encouraged traders to alter their rate hike bets, with the chances of a 50-basis point hike in December hopping to nearly 85% from 52% before the data was removed, as stated by the CME FedWatch.
Amazon.com Inc (NASDAQ: AMZN) streamed more than 11% after the Wall Street Journal published that the e-commerce heavyweight was studying unprofitable business units to trim costs.
The CBOE volatility index also comprehended as Wall Street’s fear gauge dropped to a two-month low of 23.19 points.
The S&P 500 was higher by 4.59% in afternoon trading at 3,920.58 points.
The Nasdaq earned 6.17% to 10,992.04 points, while the Dow Jones Industrial Average stood alert by 3.04% at 33,503.45 points.