By Liz Moyer
Investing.com -- U.S. stocks were rising after data indicated inflation has slowed since hitting a peak earlier this year, fueling hope the Federal Reserve will ease up on its interest rate increases.
At 9:53 ET (14:53 GMT), the Dow Jones Industrial Average was up 738 points or 2.3%, while the S&P 500 was up 3.7% and the NASDAQ Composite was up 5.2%.
The October report from the Labor Department said the consumer price index rose 7.7% in the year through last month, down from the 8.2% gain in September. On a core basis, excluding food and energy, prices rose 6.3% over the last year, down from 6.6% in the year through September.
The report was better than expected. Analysts had forecast an annual growth rate of 8% and 6.5%. That top-line inflation has fallen for four months from a peak of 9.1% in June, and is the lowest rate since January.
The Fed has been raising its benchmark rate to tame inflation. After four consecutive increases of 0.75 percentage points each, the Fed could decide to raise rates by a slower half-percentage point at its next meeting in November. That expectation, which is growing among traders, could fuel a rally in growth stocks.
Benchmark Treasury yields fell after the report. The 10-year yield fell below 4%, to 3.946%, while the yield on the 2-year fell to 4.395%. Meanwhile, shares of tech companies jumped. Apple Inc (NASDAQ:AAPL) stock was up 5%, while chip maker NVIDIA Corporation (NASDAQ:NVDA) shares rose 7.2%.
Tapestry Inc (NYSE:TPR) beat expectations for earnings and revenue but lowered its forecast for the full year, citing foreign exchange effects. Shares of the parent of Coach and Kate Spade rose 2.6%.
Oil fell. Crude Oil WTI Futures was down 0.2%, to $85.61 a barrel, while Brent Oil Futures crude fell 0.2% to $92.84 a barrel. Gold Futures rose 1.9% to $1,746.