Thursday’s rally was the best day for broader markets since stocks blew up in 2020 after facing significant selling pressure amid pandemic concerns. Indexes raced higher Thursday morning after showing October CPI data Inflation was cooler than expected.

What you should know: Thursday’s CPI inflation The reading came a week after the Federal Reserve hiked interest rates by 0.75% for the fourth consecutive month as it continues to struggle with high inflation.

The Fed rate hikes are expected to eventually slow the economy and put pressure on consumer spending. Thursday’s data appeared to show that Fed policy action is beginning to shake economic conditions.

As a result, many now expect a Fed pivot at the central bank’s next meeting on Dec. 14, which acted as the main catalyst for Thursday’s move.

Historical stock rise: The Nasdaq 100 led Thursday’s rise, closing up 7.49% at 11,605.96. Ninety-eight of the stocks in the Nasdaq 100 ended the day in the green. The Nasdaq Composite was up 7.35% to end the day at 11,114.15.

One of the oldest and most well-known measures of stock market performance, the Dow Jones Industrial Average is a price-weighted index composed of 30 stocks. The blue-chip index closed up more than 1,200 points, or 3.7%, at 33,715.37 on Thursday.

The S&P 500 rose 5.54% to 3,956.37 and the SPDR S&P 500 SPYan ETF tracking the S&P 500 index closed up 5.49% at $394.66.

What’s next: The Fed will see another CPI print ahead of its last meeting of the year in mid-December. Thursday’s cooler-than-expected CPI data suggests the Fed may opt for a less aggressive stance 0.5% or 0.25% rate hike next month.

See also: Here’s what pundits expect from the Fed next month

Photo: Bridget Werner from Pixabay.