Wall Street recovered on Thursday, with the Dow Jones Industrial Average surging over 800 points, as market participants shook off another red-hot inflation report. The S&P 500 also rose 2.6%, while the tech-heavy Nasdaq Composite climbed over 2%.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Thursday's choppy session first saw stocks fall to their lowest levels since 2020 after the Bureau of Labor Statistics released its Consumer Price Index (CPI) report for September, showing prices rose 8.2% over the prior year and 0.4% over the previous month. So-called Core CPI, which excludes more volatile food and energy prices, also rose 6.6% from a year ago--marking the highest level since 1982--and 0.6% month-over-month.
However, stocks rebounded later in the session, with the Dow regaining more than 1,300 points and the S&P 500 posted its widest trading range since March 2020 as it rallied higher from its lows. Investors may be betting that September's hotter-than-expected inflation report means that rising prices will peak in the near-term.
Nevertheless, many market participants expect that September's report has all but confirmed the Federal Reserve will issued another 75-basis-point rate hike at its November meeting.
Elsewhere, Delta Air Lines
"Global demand is continuing to ramp as consumers shift spending to experiences, businesses return to travel and international markets continue to reopen," CEO Ed Bastian said on an earnings call Thursday. "Demand has not come close to being quenched by a hectic summer travel season."
However, BlackRock's assets under management dropped to $7.96 trillion in the third quarter, down 16% year-over-year, as a strong U.S. dollar weighed on the value of investments in Europe and Asia.
"The speed at which central banks are raising rates to rein in inflation alongside slowing economic growth is creating extraordinary uncertainty, increased volatility, and lower levels of market liquidity," CEO Larry Fink said on the company's earnings call Thursday.
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