Stocks Open Sharply Higher as Inflation Cools in November

Street signs at the intersection of Wall and Broad Streets in lower Manhattan, N.Y., on Oct. 13, 2021. John Minchillo/AP Photo

Stocks are opening sharply higher on Wall Street after the government reported that inflation slowed dramatically last month. The S&P 500 jumped 2.5 percent in the early going Tuesday and the tech-heavy Nasdaq composite rose 3.3 percent. Treasury yields also fell sharply following the report showing that consumer prices rose 7.1 percent in November from a year ago, down from 7.7 percent in October and a recent peak of 9.1 percent in June. It was the fifth straight slowdown. The encouraging data on inflation cements investors’ expectations the Federal Reserve will ease up on its aggressive hikes to interest rates. The Fed’s next decision arrives Wednesday.