Wall Street surged to its best day since April 2020 as markets cheered a government report that inflation cooled more than expected last month.
The S&P 500 jumped 5.5% Thursday and the Dow rose 1,200 points as traders took the data as a sign the worst of inflation may have passed.
Treasury yields fell dramatically as bond markets relaxed. Even bitcoin rose on hopes a slowdown in inflation could mean the Federal Reserve won’t have to be so aggressive about raising interest rates. Such hikes have been the main reason for Wall Street’s troubles this year and are threatening a recession.
The S&P 500 rose 207.80 points, or 5.5%, to 3,956.37.
The Dow Jones Industrial Average rose 1,201.43 points, or 3.7%, to 33,715.37.
The Nasdaq rose 760.97 points, or 7.4%, to 11,114.15.
The Russell 2000 index of smaller companies rose 107.53 points, or 6.1%, to 1,867.93.
For the week:
The S&P 500 is up 185.82 points, or 4.9%.
The Dow is up 1,312.15 points, or 4%.
The Nasdaq is up 638.89 points, or 6.1%.
The Russell 2000 is up 68.06 points, or 3.8%.
For the year:
The S&P 500 is down 809.81 points, or 17%.
The Dow is down 2,622.93 points, or 7.2%.
The Nasdaq is down 4,530.82 points, or 29%.
The Russell 2000 is down 377.39 points, or 16.8%.