It was updated on Nov 10, 2022, 10:42am.
The latest inflation reading revealed the Federal Reserve's battle to bring down prices is finally bearing fruit, but experts say it's just the first step in the Fed's lengthy odyssey to tame inflation
The stock market went up after the report.
The S&P 500 climbed 4.3%, while the tech-laden Nasdaq soared 5.8%, as the S&P 500 jumped 2.67% and the S&P 500 gained 4.3%.
The Labor Department's release of last month's consumer price index data, revealing prices rose 7.7% on an annual basis, was followed by a surge.
It appears that the Fed is slowing the U.S.' worst bout of inflation in four decades by raising interest rates.
Rick Rieder, chief investment officer for global fixed income at Blackrock, wrote in a Thursday note that the strongCPI report proved a strong first mile in the Fed's "marathon" against inflation.
The 10-year Treasury yield fell to its lowest level in a month.
Apple, Amazon, Alphabet, Meta and Microsoft each spiked more than six percent.
The stock rally was declared a triumph of hope over reality by John Lynch. Lynch said the battle against inflation would go on for a long time.
The market usually follows the release of the consumer price index with the Dow suffering its worst daily performance of the year after September, falling 4% and gaining 3%. The Fed has raised the federal funds rate by 75 basis points in the last four meetings, but investors are hopeful that the Fed will change its monetary policy in the near future. The FedWatch tool shows that the next rate hike will be 50 basis points.
The 5.8% gain is the largest in a year.
Some of this week's massive losses following the collapse of FTX have been mitigated by Thursday's rally. Since Sunday, the price of the digital currency has fallen more than 15%.
Inflation increased by 7.7% in October, but high food and rent prices remain problematic.
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