Stocks mount biggest comeback in years; Dow, S&P 500 jump 3%

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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.

That forced investors to brace for continued, big hikes to interest rates by the Federal Reserve to get inflation under control, and the potential recession those moves could create. The Dow Jones Industrial Average fell as many as 549 points shortly after the report’s release, and the Nasdaq was down as much as 3.2%.

They’re the latest jagged, back-and-forth moves for markets, which have been swinging sharply due to all the uncertainties about economies around the world and how badly higher interest rates will hurt them.“Hopefully it’s because people have dug into the details of the inflation report and noticed a few signs that we could get inflation relief by the end of the year,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments.

Higher rates make buying a house, car or anything else purchased on credit more expensive, and the hope is that will slow the economy and job market enough to undercut inflation. But higher rates take a notoriously long time to take full effect, and the Fed risks causing a recession if it ends up going too far.As the day progressed, and investors had more time to dig into the inflation report’s details, though, analysts said they perhaps saw some glimmers of hope.

The yield on the 10-year Treasury, which helps set rates for mortgages and many other loans, rose to 3.93% from 3.90% late Wednesday. Earlier in the day, it topped 4%. The inflation report hit Wall Street just as companies gear up to report how much profit they earned during the summer.

 

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Staged is definitely the word for this suspicious u-turn during the trading day

Thats because I single handedly put to rest any fears of recession while preparing for my families visit to feed 6 people when I get back from my trip. THEN buying a 230 dollar car battery. Looks like im not getting a record player until christmas.

You're not only pissing on our heads and telling us it's raining, there's blood in the urine and you're coughing up a lung at the same time (nobody believes you anymore).

So my super smart friend at the NYSE on wallstreetbets said today “ Smart move $DPLS made with $GLEE . There’s A LOT of upside now with less risk & more reward now that infrastructure is where money will be flowing to”.

Everything is still down like 80%

Biden's plunge police in action,

So it recovered from an earlier dive?

Thanks for the copium report.

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.

Reflection of Dumpy getting dumped... Twice?

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