Stocks in the US moved sharply lower early in the session following US inflation report on Wednesday but showed a substantial turnaround over the course of the trading day. By the end of day, the Nasdaq surged 369.65 points or 2.2 percent to 17,395.53. The S&P 500 also jumped 58.61 points or 1.1 percent to 5,554.13, while the Dow rose 124.75 points or 0.3 percent to 40,861.71.
Data yesterday showed consumer prices increased in line with estimates although core consumer prices rose by slightly more than expected, reducing bets of a higher interest rate cut by Fed. The Labor Department said its consumer price index rose by 0.2 percent in August, matching the uptick seen in July as well as economist estimates. Meanwhile, core consumer prices, which exclude food and energy prices, climbed by 0.3 percent in August after rising by 0.2 percent in July.
The yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 3.66 percent. The data also bolstered greenback to 101.42 after having lingered below 101 mark in the previous session.
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