Inflation data encouraged investors that inflation may have peaked
Wall Street roared back to life in a big way today, with the Dow adding more than 1,200 points and scoring its best single-session gain since May 2020, on the back of October's encouraging inflation data. The S&P 500 and tech-heavy Nasdaq each tacked on triple digits as well, as economists hope the better-than-expected reading is a sign that inflation has hit its peak. The resulting fall in Treasury yields is also making a splash, and Wall Street's "fear gauge," the Cboe Volatility Index (VIX), fell to its lowest level in nearly two months.
Continue reading for more on today's market, including:
- Software stock nabs best session in 13 years.
- Cisco stock faces off with key trendline.
- Plus, LOW put activity ramping up; and two earnings reports to unpack.
The Dow Jones Industrial Average (DJI - 33,715.37) added 1,201.43 points, or 3.7% for the day. Salesforce.com (CRM) added 10% to secure its spot as the Dow's best performer today. McDonald's (MCD), meanwhile, was the only laggard, losing 0.7%.
The S&P 500 Index (SPX - 3,956.37) tacked on 207.8 points, or 5.5% for the day. The Nasdaq Composite Index (IXIC - 11,114.15) climbed 761 points, or 7.4% for the session.
Lastly, the Cboe Volatility Index (VIX - 23.53) shed 2.6 points, or 9.8% for the session.
5 Things to Know Today
- It's not looking good for cryptocurrency exchange FTX, as it battles new fraudulent allegations. (MarketWatch)
- United Internet AG is receiving a host of suitors for its initial public offering (IPO). The German web hosting business can count JPMorgan Chase (JPM), Deutsche Bank (DB), and Berenberg as among those interested. (Bloomberg)
- Put traders can't be thrilled about Lowe's stock today.
- EV stock brushes off quarterly miss.
- AstraZeneca stock secures post-earnings pop.
Oil, Gold Prices Soar After Inflation Reading
Oil prices posted their first gain in four sessions, thanks to a dip in the greenback that followed the inflation data in the U.S. December-dated crude added 64 cents, or 0.8% to trade at $86.47 per barrel.
Gold prices also popped, thanks to today's inflation data, with December-dated gold adding $40, or 2.3%, to settle at $1,753.70 an ounce.