S&P 500 closes lower, notches 5-day losing streak ahead of key inflation report; European markets close lower as investors look ahead to U.S. inflation data
Stocks staged a massive comeback Thursday, with the Dow Jones Industrial Average surging 1,500 points from its intraday lows, as traders shook off another hot inflation report.
The Dow Jones Industrial Average rose 827 points, or 2.83%, to close at 30,038.06 after being down more than 500 points earlier in the day. The S&P 500 ticked up 2.60% to 3,669.87, breaking a six-day losing streak. The Nasdaq Composite gained 2.23% to end the day at 10,649.15.
Stocks fell to session lows when the September consumer inflation report showed a larger-than-expected increase. The consumer price index increased 0.4% for the month, more than the 0.3% estimate from Dow Jones. On an annual basis, inflation was up 8.2%.
Persistent high inflation could mean that the Federal Reserve is more aggressive with future interest rate hikes and keeps rates higher until price increases cool off.
Delta Air Lines shares rose in morning trading after issuing a sunny outlook for business and leisure travel, particularly for international trips.
The carrier expects to post another profit in the fourth-quarter of the year, a sign consumers are still willing to pay relatively high fares to travel despite strong inflation.
European markets closed higher Thursday, having whipsawed as reports emerged of a potential fiscal policy U-turn from the British government and investors around the world balked at the latest U.S. inflation data.
The German consumer price index rose by 10% year-on-year in September and 1.9% month-on-month, the country’s Federal Statistical Office said Thursday, confirming a preliminary reading.
EU-harmonized CPI inflation was 10.9% annually and 2.2% on the month, also in line with forecasts.
Source: CNBC, Investing.com