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Nov. 10 (UPI) -- Thursday's cooler Consumer Price Index report Thursday boosted stocks to their best day since the spring of 2020, continuing gains since the midterms. The Dow Jones Industrial Average climbed 1,201.43 points or 3.7% to close at 33,715.37. The S&P 500 rose 207.80 points or 5.54% to 3,956.37. The Nasdaq Composite went up 760.97 or 7.35% to close at 11,114.15.
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The Nasdaq 100 added $700 billion in value, according to Bloomberg.
The Bureau of Labor Statistics' October CPI report brought with it some much-needed optimism for investors, reflecting a cooling economy.
The all-items index increased by 7.7% for 12 months, making it the smallest 12-month increase since the timespan ending in January. All increases, including for food and shelter, were smaller than what was reported in September.
"Interest rates are still running everything in markets," Exencial Wealth's Tim Courtney told CNBC. "With today's CPI number coming down, the market is now betting pretty clearly that they think the interest rate [rises] are coming close to an end. So, you see those interest rate sensitive stocks doing really, really well."
The results of the report suggest the Federal Reserve's four straight 0.75-point rate hikes are cooling the economy.
"The first downside surprise in inflation in several months will inevitably be received by an equity market ovation," Principal Asset Management Chief Global Strategist Seema Shah said, according to Yahoo Finance. "Let the market enjoy today, it still has another 100 basis points or so of tightening to commiserate."
