Stocks in Wall Street surged on Tuesday after the report of U.S. consumer price index came in lower-than-expected in November, indicating that inflation has passed its peak.
As of 10:50 BKK time on Tuesday, Dow Jones rose 208.55 points or 0.61% to 34,213.59 points, while S&P 500 jumped 1.29% and tech-heavy Nasdaq soared 1.97%.
The consumer price index for November increased 0.1% on a monthly basis while slowing down to 7.1% on a yearly basis. After excluding the volatile energy and food prices, the U.S. core CPI increased 0.2% last month and 6.0% from last year.
According to the Labor Department, gasoline prices dropped 2.0% after rising 4.0% in October, while the cost of natural gas and prices for electricity also fell. However, food prices rose 0.5% after a 0.6% increase in October, driven by rises in prices of fruits and vegetables, cereals and nonalcoholic beverages. On the other hand, prices for meat, fish and eggs fell last month.
A slowdown in consumer prices at a consistent pace is what the U.S Federal Reserve is looking for in the two-day meeting from Tuesday to Wednesday this week. The easing trend will also reflect in slower aggression from the Fed in hiking interest rate next year.