U.S. stocks soar after better than expected inflation stokes rate hopes By Investing.com

Investing.com — U.S. stocks jumped Tuesday after data showed inflation slowed more than expected in October, supporting speculation that the Federal Reserve may be on the verge of ending its rate hike cycle.

As of 10:55 a.m. ET (3:55 p.m. GMT), the was up 505 points or 1.5%, while the was up 2% and the was up 2.3%.

The main Wall Street indices closed mixed on Monday in mixed trading at the start of the new week. The 30-stock Dow added 0.2%, while the benchmark S&P fell 0.1% and the tech-heavy Nasdaq lost 0.2%.

US CPI slows more than expected

The gains follow the release of data showing that overall U.S. inflation slowed more than expected in October, providing a boost to Federal Reserve officials keen to rein in price pressures in the largest economy in the world.

The United States grew 3.2% in October on an annualized basis, decelerating from the 3.7% rate recorded in September. This is the first drop in the figure in three months. Month over month, the measure remained stable, down from September’s 0.4% gain.

Economists forecast an annual gain of 3.3% and a gain of 0.1% from the previous month.

The Fed chairman indicated last week that further interest rate hikes were still possible as the central bank tries to return inflation to its 2% target, but the market still expects Fed stands firm in final meeting of year as inflationary pressures show signs. cooling. This result prompted investors to speculate that the Fed’s next move could be a cut next year.

Home deposit reports decline in sales in third quarter

On the business side, supermarkets are increasing their publication of results.

Home Depot (NYSE:) reported a smaller-than-expected 3.1% decline in third-quarter comparable sales as customers took on smaller home projects and repairs. The retailer also exercised caution for the coming months, lowering its full-year outlook, now expecting sales to fall 3-4% from a year earlier, compared with a previous forecast of a 2-5% decline. Shares rose 6.3%.

Target (NYSE:) follows with its results on Wednesday, while Walmart (NYSE:) and Macy’s (NYSE:) are expected to report results on Thursday.

Electric vehicle maker Fisker Inc (NYSE:) reported disappointing results and said it would delay its quarterly regulatory filing. Shares fell 23%.

Oil helped by the IEA which raises its demand growth forecasts

Oil prices rose slightly on Tuesday after the International Energy Agency raised its forecast for oil demand growth for this year and next, despite the economic risks ahead.

The IEA, in its report, raised its growth forecast for 2023 to 2.4 million barrels per day from 2.3 million, and to 930,000 barrels per day from 880,000 in 2024.

The agency was careful to point to an expected deceleration in economic growth in almost all major economies next year, but said its expectations were supported by hopes for lower interest rates and the recent fall in crude price.

The Organization of the Petroleum Exporting Countries also slightly raised its forecast for growth in global oil demand for 2023, in its report released on Monday.

(Peter Nurse and Oliver Gray contributed to this article.)