Wall St. Rallies To One Of Its Best Days After Inflation Report

U.S. stocks rallied Tuesday to one of their best days of the year after the first of several highly anticipated reports on the economy this week came in better than expected, Stan Choe reported for the Associated Press (AP).

The S&P 500 jumped 1.7% for its third-best day of 2024 after the U.S. government reported inflation at the wholesale level slowed last month by more than economists expected. I Photo: New York Stock Exchange Facebook

The S&P 500 jumped 1.7% for its third-best day of 2024 after the U.S. government reported inflation at the wholesale level slowed last month by more than economists expected.

The Dow Jones Industrial Average rose 408 points, or 1%, and the Nasdaq composite clambered 2.3% higher.

In stock markets abroad, indexes were modestly higher across much of Europe and Asia.

Japan’s Nikkei 225 was an outlier and jumped 3.4%. Japan’s market has been viciously volatile recently, including the worst drop for the Nikkei 225 since the Black Monday crash of 1987.

It’s been swinging since a hike to interest rates by the Bank of Japan forced many hedge funds and other investors to abandon a popular trade all at once, where they had borrowed Japanese yen at cheap rates to invest elsewhere.

The forced selling that followed the surge in the Japanese yen’s value reverberated around the world, Yuri Kageyama also reported for AP.