Despite investor concerns about cryptocurrencies, and the ongoing uncertainty regarding which party has won the House and Senate, stocks on Wall Street have seen their greatest increase since April of 2020.
Stocks jumped to their biggest gains, reports the Wall Street Journal, in “more than two years, after softer-than-expected inflation data reignited bets that the Federal Reserve would slow the pace of its interest rate increases.”
Altogether, the Dow scored a 1,200-point gain on signs that inflation is softening. Analysts also noted that a softer dollar and falling Treasury yields helped to boost stocks. Inflation on a year-to-year basis was additionally down to 7.7%.
Investors were particularly impressed with a government report indicating that price increases overall eased last month. This trend was seen as particularly hopeful because it may mean that the Federal Reserve’s interest rates may be lessening inflation.
According to news sources, traders now anticipate that the Fed will raise its benchmark lending rate next month, but by a small mark of half a percentage point.
By Garry Boulard
