The Nasdaq rose more than 5% on Thursday after data showed U.S. consumer prices rose less than expected in October, fueling expectations that the Federal Reserve could reduce the size of its future highs. of interest.
The Labor Department said consumer prices rose 7.7% in the 12 months through October, while the core index, which excludes volatile food and energy prices, rose 6.3% on the same basis.
Economists polled by Reuters had expected increases of 8% and 6.5%, respectively.
“It’s a good sign for the Fed … it’s all going in the direction the Fed wants,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
“On the basis of this data alone, this would allow the Fed to raise rates by just 0.50 percentage point instead of 0.75 percentage point at the next meeting.”
The data prompted traders to adjust their rate hike bets, with the odds of a 0.50 point increase in December jumping to over 70% from 45% before the data was released.
At 12:23 (GMT), the Dow Jones index was up 2.67% to 33,383.02 points, while the S&P 500 was up 4.15% to 3,904.32 points. The Nasdaq Composite technology index rose 5.65% to 10,938.23 points.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
