S&P 500 and Nasdaq Soar 2% as Inflation Cools

Barry Adams
10 Aug, 2022
New York City

Stocks on Wall Street soared after the latest inflation report showed a slight easing. 

Tech stocks led the gainers after the inflation index eased in July but stayed elevated near a four-decade high after the 7.7% fall in gasoline index was outpaced by higher food and housing indexes. 

Consumer prices for goods and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices. 

The Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday. 

Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July. 

The S&P 500 surged 2.1% to 4,206.71 and the Nasdaq Composite index soared 2.6% to 12,811.94. 

Futures of crude oil prices declined $1.38 to $89.12 a barrel and natural gas edged up 15 cents to $7.99 a thermal unit. 

After the release of the latest inflation report, the yield on 10-year U.S. Treasury notes edged down to 2.76% and 30-year U.S. Treasury bond fell 6 points to 2.96%. 

The yield on 2-year U.S. Treasury notes edged down to 3.15%. 

Coinbase Global Inc rose 6.6% to $93.32 after the cryptocurrencies exchange operator said second quarter net revenues fell to $803 million from $2.03 billion a year ago. 

Coinbase swung to a net loss of $1.1 billion from a profit of $1.6 billion a year ago. 

The exchange operator said monthly transacting users edged up to 9.0 million from 8.8 million a year ago and transacting volume plunged to $217 billion from $462 million a year ago.  

Bitcoin, the most heavily traded cryptocurrency on the exchange, has plunged 74% from the peak in November 2021 to the low in June 2022.  

GoodRx Holdings declined 7% to $7.19, after surging nearly 40% in the previous session, after the online pharmacy price comparison services reported better-than-expected quarter results two days ago.   

Nikola Corp gained 0.7% to $7.01 after the company said its chief executive officer Mark Russell will retire at the end of 2022. 

Tesla Inc gained 2.5% to $871.54 and chief executive Elon Musk sold 7.92 million shares between Aug 5 and Aug 9 for $6.88 billion, according to a series of regulatory filings with the SEC.