S&P 500 Surges 4% After Rapid Inflation Cooled

Barry Adams
10 Nov, 2022
New York City

Stocks point to higher opening after the latest consumer inflation data showed a decline in monthly and annual pace. 

Consumer price index in October rose at a slower pace than expected but remained elevated. 

The CPI index increased 0.4% from September and advanced at a slower pace of 7.7% from a year ago, the U.S. Bureau of Labor Statistics reported Thursday. 

The inflation rose at the slowest pace in January and the annual pace of increase slowed from 8.2% in September. 

The increase in goods prices have slowed in recent months but services prices continue to rise at a rapid pace and inflation remains stubbornly high. 

The index for shelter (or equivalent to rent or home ownership) contributed to half of the monthly gain and the index for gasoline and food continued to rise. 

The consumer price inflation, excluding food and energy, slowed to 0.3% in the month from 0.5% rate in September and eased to 6.3% from 6.5% rate in the previous month. 

Crude oil declined 48 cents to $85.34 a barrel and natural gas futures rose 9 cents to $5.96 a thermal unit. 

The yield on 2-year Treasury notes eased to 4.06%, 10-year Treasury notes fell to 4.60% and 30-year Treasury bonds inched lower to 4.28%. 

The cryptocurrency exchange FTX is facing a liquidity crisis that may lead to the demise of the company that was valued at $32 billion at the beginning of 2022. 

Rival cryptocurrency exchange Binance decided to not bid for the company after conducting initial due diligence of the company's finances and ownership structure. 

Silicon Valley based Sequoia also said in a tweet that it has marked down its $215 million investment in FTX to zero.