The US stock markets saw a sharp rise on Thursday due to signs of decreasing inflation. The Dow Jones, an index representing stocks of 30 major US companies, jumped 3 per cent. On the other hand, the NASDAQ and S&P 500 indexes of the New York Stock Exchange saw gains of 6% and 4%, respectively. During the month of October, inflation in the US has come down more than estimates, after which this rally has been seen in the stock market.
The US stock markets were under pressure since the beginning of this year due to hike in interest rates. Inflation in the US had reached several-year highs, forcing the central bank to resort to aggressive interest rate hikes. Along with this, the effect of fall in the shares of tech companies was also seen on the global level.
At the time of writing the news, Dow Jones was trading at 33,423.68 points, up 2.80 per cent or 909.74 points. At the same time, the Nasdaq Composite Index rose by about 5.80 percent or 600.04 points to reach the level of 10,953.21. At the same time, the S&P 500 jumped about 4.3% or 161.05 points to reach the level of 3,908.82.
Inflation rate at 7.7% in October
US Inflation: According to the data released by the US government on Thursday, the inflation rate came down to 7.7 percent in October. Earlier, the inflation rate in September was 8.2 per cent. However, consumer goods prices in the US increased by 0.4 percent on a monthly basis. Excluding food and energy prices, core inflation grew 6.3 per cent in 12 months, compared to 0.3 per cent since September.
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