Wall Street surged to its best day since April 2020 as markets cheered a government report that inflation cooled more than expected last month.
The S&P 500 jumped 5.5% Thursday and the Dow rose 1,200 points as traders took the data as a sign the worst of inflation may have passed.
Treasury yields fell dramatically as bond markets relaxed. Even bitcoin rose on hopes a slowdown in inflation could mean the Federal Reserve won’t have to be so aggressive about raising interest rates. Such hikes have been the main reason for Wall Street’s troubles this year and are threatening a recession.