Wall St climbs after August inflation report, oil price slide
SPY•Major indexes, volatility and Fed rate expectations
At 9:38 a.m. ET, the Dow Jones Industrial Average .DJI rose 638.99 points, or 1.23%, to 52,703.09; the S&P 500 .SPX gained 79.87 points, or 1.05%, to 7,671.57; and the Nasdaq Composite .IXIC gained 280.58 points, or 1.08%, to 26,362.30.
The CBOE Volatility Index .VIX, Wall Street's fear gauge, fell 1.74 points to 16.16, signaling easing investor anxiety following the inflation report.
Traders see a 86% chance of a hike at the Fed's next meeting, compared with nearly 70% before the report, according to the CME FedWatch tool.
All 11 major S&P 500 indexes traded in the green, with the technology index .SPLRCT leading gains, up 1.3%. Industrials .SPLRCI and real estate .SPLRCR indexes also rose 0.8% each.
"Some investors are questioning how much further this year's rally can run. Encouragingly, history suggests that strong starts tend to persist," wrote Jeff Schulze, head investment strategist at Franklin Templeton Institute.
