Stock Market Today: Inflation Dip Causes Market Rally
The U.S. stock market experienced an upswing on Tuesday following the release of inflation data that came in below expectations. The Consumer Price Index (CPI) for October rose by a modest 0.1%, down from 0.3% in September and below the anticipated 0.2%. This dip in inflation figures has caused optimism among investors, prompting a rally across major indices.
The Dow Jones Industrial Average saw a gain of over 500 points, translating to a 1.5% increase. The S&P 500 recorded a robust 1.8% uptick, while the Nasdaq Composite led the charge with a 2.1% climb. Impressively, gains were observed across all 11 major sectors of the S&P 500.
Technology stocks, including industry giants such as Apple, Amazon, and Microsoft, recorded gains exceeding 2%. Energy stocks also joined the rally, with Exxon Mobil rising 2.5% and Chevron surging by 3%.
Investors speculated that the cooling inflation data might signal a potential slowdown in the Federal Reserve's ongoing interest rate hiking cycle. The central bank's aggressive stance against inflation has raised concerns about a possible economic downturn, but the recent data suggests a more measured approach.
