A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, October 11, 2022.
Brendan McDermid | Reuters
Here are the most important news items that investors need to start their trading day:
1. How do you follow that?
The stage was set for a meltdown Thursday. The consumer price index came in hot, indicating that inflation was not slowing down, despite the Federal Reserve’s recent rate hikes. Stocks plummeted at the beginning of the trading day, falling to their lowest levels since 2020. But then a funny thing happened. The markets reversed course in a stunning manner. The Dow closed over 800 points higher while the S&P 500 and Nasdaq jumped by more than 2% each. The S&P broke a six-day losing streak. It’s just one day, though, and the Fed is set to keep raising rates as long as prices keep surging. Earnings season is kicking in, as well, and that could bring more surprises for investors. (More on that below.) Read live market updates here.
Read more: UK finance minister reportedly sacked
2. Here come the banks
JPMorgan Chase & Co. President and CEO Jamie Dimon testifies during a U.S. House Financial Services Committee hearing titled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks” on Capitol Hill in Washington, September 21, 2022.
Elizabeth Frantz | Reuters
JPMorgan Chase and Wells Fargo are the first big banks to report earnings this season. JPMorgan posted profit and revenue above analysts’ expectations, as its…
