Stocks rally after promising inflation data
Los Angeles —
Wall Street stocks rose sharply on Tuesday after the latest inflation data came in softer-than-expected and raised hopes of an end to interest rate hikes from the Federal Reserve.
The Dow Jones Industrial Average jumped 1.43% to end at 34,827.70.
The S&P 500 gained 1.9% 4,495.70 in its best day since April, while the tech-heavy Nasdaq Composite rose 2.37% to end at 14,094.38.
All three major indexes registered their biggest daily percentage gains since last year.
CPI was unchanged last month while the rise in underlying inflation was the lowest in two years. This instilled hope amongst investors that the Federal Reserve could likely be done raising interest rates.
The 10-year Treasury yield tumbled below 4.5% following the soft inflation report after spiking above 5% in October.