U.S. stocks end sharply higher, reversing early losses seen after stronger-than-anticipated inflation

U.S. stocks ended sharply higher Thursday after investors weighed a hotter-than-anticipated report on inflation that firmed up expectations for another large interest rate hike by the Federal Reserve. The Dow Jones Industrial Average jumped more than 800 points to close 2.8% higher, while the S&P 500 gained 2.6% and the Nasdaq Composite jumped 2.2%, according to preliminary FactSet data. All three major benchmarks ended higher, reversing sharp losses seen at the open after a report on the consumer price index showed inflation rose in September more than anticipated. Investors are largely betting that the Fed will hike its benchmark rate by three quarters of a percentage point at its policy meeting in early November.

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