Stocks mount their biggest one-day rally since 2020
Stocks mounted their biggest rally since 2020 after a weaker than expected inflation report buoyed investor hopes that inflation has peaked.
The Dow Jones Industrial Average jumped more than 1200 points, or 3.7%, in its best day since May 2020. The S&P 500 jumped 5.54%, in its biggest one-day rally since April 2020. The Nasdaq Composite surged 7.35%, its best since March 2020.
— Sarah Min
Average 30-year mortgage rate tumbled 60 basis points to 6.62%
Another data point for the equity market to like: The average rate on a 30-year fixed-rate mortgage plunged 60 basis points to 6.62% from 7.22% yesterday, Mortgage News Daily said. (A basis point is 0.01%, or one one-hundredth of a percent.)
That matches the record drop at the start of the Covid 19 pandemic, although the rate is still more than double what it was at the start of 2022.
“This is the best argument to date that rates are done rising, but confirmation requires next month’s CPI to tell the same story,” said Matthew Graham, chief operating officer of Mortgage News Daily. But Graham said rates are not out of the woods. They are unlikely to move dramatically lower, as there is still plenty of economic uncertainty in the U.S. and overseas.
— Scott Schnipper, Diana Olick
Commodities rally with stock market
Commodities rallied along with the stock market Thursday.
Brent crude rose gained 0.9%. The U.S. West Texas Intermediate‘s crude followed at 0.6% up.
Metals were up…
