Wall Street surged Wednesday in response to a second positive inflation report in as many days, sending the Dow Jones Industrial Average soaring more than 700 points and the S&P 500 to its its best day since November.
The Dow Jones climbed 703.27 points (1.65%) on the day to close at 43,221.55. The S&P 500 rose 1.83% to 5,949.91, and the Nasdaq Composite spiked 2.45% to 19,511.23.
The banner day on Wall Street followed good news on the inflation front as the US economy grinds its way out near-three year downturn.
Tuesday's producer price index (PPI) and Wednesday's consumer price index (CPI) showed that inflation came in lower than expected in December 2024.
"The market [is] breathing a sigh of relief as back-to-back inflation gauges, PPI yesterday and CPI this morning, came in slightly below expectations," John Kerschner, portfolio manager at Janus Henderson Investors, told CNBC.
"Perhaps most importantly, today's CPI number takes additional rate hikes off the table, which some market participants were beginning to prematurely price in."
The Federal Reserve has started to lower interest rates cautiously to ensure the US economy continues on the road to recovery. This week's reports went a long way toward assuring investors' fears of a downturn.
