The S&P 500 (^GSPC) rose 1%, while the tech-heavy Nasdaq Composite (^IXIC) gained 2%. The Dow Jones Industrial Average (^DJI) turned positive at the close after lagging other indexes for much of the session. Bond yields were steady after their biggest one-day drop in more than a decade on Thursday. A twist to China’s zero-covid-19 policy to reduce the time quarantined travelers in the country spend is intense in early trade. Oil markets rose as traders speculated the move could boost commodity demand, with West Texas Intermediate (WTI) futures jumping nearly 3% to $88 a barrel. Meanwhile, on the economic data front, the University of Michigan’s preliminary reading of its consumer sentiment survey for November fell to 54.7 from. 59.9 in October, the lowest since July. All three major averages soared on Thursday, each recording their biggest daily gains since recovering from the maelstrom of the COVID crash more than two years ago. The outsized moves were triggered by lighter consumer price data in October that fueled bets that the Federal Reserve may stop tightening economic conditions early next year. The S&P 500, Dow and Nasdaq rose 5.5%, 3.7% — or 1,200 points — and 7.4%, respectively. “Overall, the report suggests that peak inflation may finally be behind us, although inflation may remain high for a while,” BNY Mellon Investment Management head of US Macro Sonia Meskin said in a note on Thursday. He noted that the rate supports the smaller rate hike of 0.50% for December telegraphed at this month’s FOMC meeting, which investors are pricing in. “However, it is also important not to overemphasize a report on inflation and the policy trajectory,” he added. The Consumer Price Index (CPI) in October rose 7.7% year-on-year and rose 0.4% over the month. On a “core” basis, which strips out volatile food and energy components of the report, prices rose 6.3% year-on-year and 0.3% month-on-month. The story continues Federal Reserve Board Chairman Jerome Powell speaks during a news conference after a meeting of the Federal Open Market Committee on November 2, 2022. (MANDEL NGAN/AFP photo via Getty Images) Despite the moderation, many strategists say the enthusiasm is premature, with Fed officials still poised to tighten more after Chairman Jerome Powell said last month that policymakers still had “some way to go” on the recovery of price stability – a message his colleagues at the central bank have since also echoed in a series of public speeches. “The Fed’s extreme reliance on data, combined with the fact that economic data will show the labor market in real time and inflation slowing only with a lag, increases the chances of an over-tightening accident,” said Gregory Dako, chief economist at EY Parthenon, in comments via email. . Meanwhile, DataTrek’s Nicholas Colas points to another reality: Although inflation declines once it peaks and begins to decline—as seen in 1970, 1974, 1980, 1990, 2001, and 2008—that decline usually accompanied by recession, and there are no exceptions to the rule. Turmoil continued in the crypto world as the collapse of FTX unfolded and the company announced on Friday morning that it had filed for bankruptcy. Deposed billionaire crypto hero Sam Bankman-Fried has also stepped down as chief executive and is reported to be under investigation by the US Securities and Exchange Commission as his exchange seeks a cash bailout. Bitcoin traded around $16,500 on Friday morning. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
