Stock Market Today: Dow Caps Wild Session, Soaring More than 800 Points
By Liz Moyer
Investing.com -- U.S. stocks whipsawed on Thursday after a report for September that showed inflation is running hotter than expected.
At 16:01 ET (20:01 GMT), the Dow Jones Industrial Average was up 827 points, or 2.8%, while the S&P 500 was up 2.6% and the NASDAQ Composite was up 2.2%. All three indexes had started the trading day deeply in the red.
The inflation report gives the Federal Reserve more reason to continue on its aggressive path of interest rate hikes when it meets in early November.
The consumer price index rose 8.2% for the year ending in September, a notch more than expected. Core CPI , which doesn’t include food and fuel, rose 6.6%, also a notch more than expected.
A day earlier, data on producer prices showed inflation in that segment also rose more than expected last month.
The expectation is now that the Fed will raise rates by another 0.75 percentage point, which would be the fourth such hike in a row as it works to beat down inflation. Minutes from its meeting in September showed the policymakers are determined to beat inflation, despite the risk of pain in the economy.
Grocery giant Kroger (NYSE: KR ) is talking to rival Albertsons (NYSE: ACI ) about a possible deal, according to multiple reports, and an announcement could come this week. Kroger shares rose 1% in late trading, while Albertsons shares jumped 11%.
Applied Materials Inc (NASDAQ: AMAT ) shares were up 4.6% after it warned on revenue for the fiscal fourth quarter, saying new rules about exports to China would cut into results.
Walgreens Boots Alliance Inc (NASDAQ: WBA ) shares rose 5% after it beat expectations and raised its outlook for sales.
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