Wall Street Significantly Higher After Better-Than-Expected Inflation in the US

Wall Street Significantly Higher After Better-Than-Expected Inflation in the US

Stock markets in New York rose sharply on Thursday. Investors reacted positively to the latest inflation data from the United States. They showed that inflation cooled down for the fourth month in October.

Inflation fell to 7.7 percent from 8.2 percent in September. As a result, the cost of living in the world’s largest economy fell more sharply than expected.

The US central bank has already raised interest rates sharply to combat high inflation. Investors now hope the Federal Reserve can cut back on gas and raise interest rates in smaller increments. Central bank president Jerome Powell hinted at smaller steps at the previous meeting. However, he noted that the Fed would likely continue raising interest rates for longer to reach its 2 percent inflation target.

Shortly after the start, the Dow-Jones index was 2.4 percent higher at 33,336 points. The broad S&P 500 gained 3.5 percent to 3,880 points, and the tech gauge Nasdaq rose 4.9 percent to 10,855 points.

Beyond Meat advanced 13 percent. However, the manufacturer of meat substitutes saw the loss increase further in the third quarter. Beyond Meat has been suffering for some time, and people are more careful about spending in the supermarket due to high inflation. As a result, they would leave the relatively expensive meat substitutes more often. However, investors had feared worse.

Rivian added 17 percent. The electric vehicle manufacturer suffered less loss than expected last quarter. The company also stuck to its production targets despite supply chain problems. Chinese competitor Nio rose 13 percent despite a larger-than-expected quarterly loss. However, the company expects to deliver almost double the number of cars this quarter compared to a year ago.

Bumble lost 2.6 percent. The dating app released a disappointing revenue forecast for the current quarter. According to the company, users have become more cautious about renewing their subscriptions due to high inflation.

The slump in the crypto world also kept people busy. Crypto exchange Binance has announced that it will not take over its ailing competitor FTX. Binance drew its conclusions after due diligence and stated that FTX’s money problems are too significant. The investigation that the American authorities are conducting into FTX also played a part in the decision. In addition, listed competitor Coinbase (plus 11.7 percent) showed some recovery after heavy price losses in recent days.

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