Stocks mount biggest comeback in years; S&P 500 jumps 2.6%

NEW YORK — Wall Street staged its biggest comeback in years Thursday, as stocks roared back from steep morning losses caused by a worse-than-expected report on inflation.

across the economy. One component that’s closely followed by policy makers and investors accelerated to its hottest level in 40 years. Smaller company stocks also rallied after an initial slide. The Russell 2000 rose 40.65 points, or 2.4%, to close at 1,728.41. Analysts said some data points buried deep within the inflation report may be offering hope that inflation is on its way to marking a peak and then easing, even though current conditions look dour. Others said technical reasons could also be helping to support markets, as some investors closed out of trades betting on declines following the inflation report.

But Thursday’s disappointing data caused some investors to expect a fifth such increase in December, dashing hopes that the Fed may begin downshifting soon. Bets increased for the Fed to pull its overnight rate above 5% by early next year. The federal funds rate started this year at virtually zero. “If you’re at least starting to see headline CPI cool, there’s hope that core CPI will follow,” Hooper said. “There’s definitely that thought process coming in.”

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks mount biggest comeback in years; Dow, S&P 500 jump 3%NEW YORK (AP) — Wall Street staged its biggest comeback in years as stocks roared back from steep morning losses caused by a worse-than-expected report on inflation.. The S&P 500 jumped 3% Thursday afternoon, a stunning reversal after earlier being down as much as 2.4% and touching its lowest level in nearly two years. Reflection of Dumpy getting dumped... Twice? The previous DOWN was because the people in the market already knew about the news. The general public finds out well after the market makers.
Source: AP - 🏆 728. / 51 Read more »

S&P 500 books second lowest close of the year. And it still can get scarier for stocks.The stock market rout isn't over yet, even with the S&P 500 down about 25% from its peak on Tuesday, according to Mizuho Securities.
Source: MarketWatch - 🏆 3. / 97 Read more »

S&P 500, Nasdaq log lowest close in more than 2 years as stocks fall for 5th dayU.S. stocks finished mostly lower on Wednesday. Only the Dow Jones Industrial Average managed to evade a loss for the day; the other two indexes recorded their fifth straight session in the red:
Source: MarketWatch - 🏆 3. / 97 Read more »

S&P 500 Seesaws After Hawkish Fed Minutes, Stock Market Fate Tied to Inflation DataThe Fed minutes from the September meeting reiterate that policymakers remain resolute on the need to make monetary policy more restrictive. The S&P 500 pushes into positive territory but bullish momentum is weak. All eyes on CPI tomorrow.
Source: DailyFX - 🏆 305. / 63 Read more »