Stock Market Today: Stocks Brush Off Hot CPI Update in Major Reversal
The major indexes were staring at steep losses to start the day, but finished the session with notable gains.
Stocks initially sold off Thursday after the latest consumer price index (CPI) showed inflation remained stubbornly high in September, before embarking on a massive rebound to end the day with impressive gains.
The Labor Department this morning said consumer prices ran hotter-than-expected last month – with many experts saying this all but guarantees the Federal Reserve issues another substantial rate hike at its November meeting. The Dow and S&P 500 were off roughly 2% at their session lows, while the Nasdaq was down 3%.
But by lunchtime, all three indexes were in positive territory – and they continued climbing from there. "Today's market reversal was a head-scratcher," says Edward Moya, senior market strategist at currency data provider OANDA. "Despite a hot inflation report, U.S. equities turned positive, as some investors are convinced core inflation will soon start trending lower." Moya adds that the rally "probably got a boost from short covering as well, but given the path for rates is higher, this market reversal won't last long."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Today, though, the buying lasted into the close. The Dow Jones Industrial Average surged 2.8% to 30,038, while the S&P 500 Index (+2.6% at 3,669) and the Nasdaq Composite (+2.2% at 10,649) easily snapped their lengthy losing streaks.
The Best Energy ETFs to Buy
Investors should continue to expect high levels of inflation, at least in the near term. According to Kiplinger staff economist David Payne, inflation will likely end 2022 around 8% before easing back in 2023.
José Torres, senior economist at Interactive Brokers, says that one contributing factor to higher inflation will be rising energy prices, which jumped recently following a decision by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to cut oil output by 2 million barrels per day. "If lower gasoline prices haven't produced satisfying inflation readings in August and September, how damaging might they be in October?" Torres asks. "A challenging winter ahead for Europe and the possibility of the relaxation of Chinese lockdowns may drive additional energy demands and propel prices further."
If that's the case, oil stocks and energy exchange-traded funds (ETFs) might get a lift as well. Here, we explore nine energy ETFs that could help investors leverage gains in oil and gas prices.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
Honeywell Leads Dow Higher: Stock Market TodayOil prices got a lift after the Treasury Department announced new sanctions on Russia's two largest oil companies.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
3M, GM, Blue Chips Lead to the Upside: Stock Market TodayThe S&P 500 followed the Dow Jones Industrial Average into green territory, but the Nasdaq lagged the other indexes because of its tech exposure.
-
Dow Adds 516 Points on Broad Optimism: Stock Market TodayEasing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.

