Stock market news today: Wild turnaround after September CPI report – Markets Insider

                                                    <br>US stocks soared more than 2% on Thursday, recovering from an initial decline of more than 2% after <a href="https://www.businessinsider.com/inflation-report-cpi-september-prices-rent-fed-rates-recession-outlook-2022-10?utm_medium=ingest&utm_source=markets" data-analytics-module="body_link">September's CPI report showed inflation continues to hit levels</a> not seen in four decades.&nbsp;<br>The <a href="https://markets.businessinsider.com/index/s&p_500?utm_medium=ingest&utm_source=markets" data-analytics-module="body_link">S&amp;P 500</a> was down 2.4% at its low for the day, before it recovered all of those losses and surged as much as 3%. The Dow Jones Industrial Average saw a 1,500 point intraday swing.<br>The reversal came after the S&amp;P 500 tested 3,500, briefly hitting a low of 3,491. The <a href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-relief-rally-sp500-technical-support-3500-stockton-2022-10?utm_medium=ingest&utm_source=markets" data-analytics-module="body_link">3,500 level represents a 50% retracement</a> of the March 2020 low at about 2,200 and the January high of about 4,800.<br>Month-over-month inflation hit 0.4%, double the expectation for a rise of just 0.2%. CPI rose 8.2% year-over-year, which was above estimates for a rise of 8.1%. Even when excluding food and energy prices, CPI rose 0.6% month-over-month, which was ahead of estimates for a rise of 0.4%.<br>The hot CPI report erased all hopes that the Fed will soon pivot away from its aggressive rate hikes anytime soon. The Fed is now expected to hike interest rates 75 basis points in both November and December, according to the <a href="https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html" data-analytics-module="body_link">CME FedWatch Tool.</a><br>The shock CPI report erased early morning gains in the market, as the S&amp;P 500 was briefly up about 1% after the UK government signaled a policy reversal of its proposed tax cut plans. However, the massive rally kicked off not long after the open, with the Dow up by more than 600 points by 11:30 a.m.<br><strong>Here's where US indexes stood at the 4:00 p.m. ET close on Thursday:</strong><br><strong style="color: #222222;">Here's what else happened today:</strong><br><strong style="color: #222222;"><strong>In commodities, bonds and crypto:</strong></strong><br>                           Read next                         <br><a class="copy-link copy-listitem" href="/indices">Indices</a><br><a class="copy-link copy-listitem" href="/commodities">Commodities</a><br><a class="copy-link copy-listitem" href="/currencies">Currencies</a><br><a class="copy-link copy-listitem" href="/stocks">Stocks</a><br><br><a href="https://markets.businessinsider.com/news/stocks/stock-market-news-today-wild-turnaround-inflation-september-cpi-report-2022-10">source</a>