Stocks are closing at three-month highs on Wall Street as investors cheered a report showing inflation cooled more than expected in July.
The S&P 500 jumped 2.1% Wednesday on expectations that slower inflation will mean the Federal Reserve won’t hike interest rates as much as feared. Technology stocks, cryptocurrencies and other investments among the year’s biggest losers due to the Fed’s aggressive rate hikes led the way.
Treasury yields pulled back following the inflation data, as traders pared their bets for how much the Fed will raise interest rates at its meeting next month.
The S&P 500 rose 87.77 points, or 2.1%, to 4,210.24.
The Dow Jones Industrial Average rose 535.10 points, or 1.6%, to 33,309.51.
The Nasdaq rose 360.88 points, or 2.9%, to 12,854.80.
The Russell 2000 index of smaller companies rose 56.36 points, or 2.9%, to 1,969.25.
For the week:
The S&P 500 is up 65.05 points, or 1.6%.
The Dow is up 506.04 points, or 1.5%.
The Nasdaq is up 197.25 points, or 1.6%.
The Russell 2000 is up 47.42 points, or 2.5%.
For the year:
The S&P 500 is down 555.94 points, or 11.7%.
The Dow is down 3,028.79 points, or 8.3%.
The Nasdaq is down 2,790.17 points, or 17.8%.
The Russell 2000 is down 276.06 points, or 12.3%.