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U.S. stocks rally despite hot inflation data

NEW YORK
2022-10-14 06:31

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NEW YORK, Oct. 13 (Xinhua) -- U.S. stocks ended sharply higher on Thursday despite a hotter-than-expected inflation report.

The Dow Jones Industrial Average soared 827.87 points, or 2.83 percent, to 30,038.72, after dropping more than 500 points earlier in the session. The S&P 500 added 92.88 points, or 2.60 percent, to 3,669.91. The Nasdaq Composite Index jumped 232.05 points, or 2.23 percent, to 10,649.15.

All the 11 primary S&P 500 sectors finished in green, with financials and energy up 4.14 percent and 4.08 percent, respectively, leading the advance.

The U.S. Labor Department reported Thursday that the nation's consumer prices index (CPI) rose 0.4 percent in September, above the 0.2 percent consensus, for an 8.2 percent year-on-year increase. The core CPI, which excludes food and energy, rose 0.6 percent, also above consensus, for a 6.6 percent year-on-year increase.

"The September CPI solidified worsening inflation trends," Will Compernolle, senior economist at FHN Financial, said in a note on Thursday.

"The 'sticky' components of core services like shelter and medical care services are rising quickly and will drive CPI changes in the months ahead," said Compernolle, adding the data boosted prospects for additional big rate hikes by the Federal Reserve.

The minutes of the Fed's September meeting released Wednesday showed that policymakers expressed concerns over the persistence of high inflation, and many were more worried about doing too little to control inflation than too much.

U.S. equities have been battered this year amid mounting fears that aggressive central bank policy tightening would slow the economy into a deep recession.
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