Dow gains 2.8% as US stocks end rollercoaster day higher

Wall Street stocks finished a roller-coaster session solidly higher Thursday, reversing early losses and rallying after disappointing US inflation data.

The Dow Jones Industrial Average ended at 30,038.72, up 2.8 per cent and nearly 1,400 points above its session low point.

The broad-based S&P 500 jumped 2.6 per cent to 3,669.91, while the tech-rich Nasdaq Composite Index advanced 2.2 per cent to 10,649.15.

The widely-anticipated consumer price index (CPI) report showed inflation rose 0.4 per cent in September from the prior month, twice the expected level and the latest indication that pricing pressures are becoming more entrenched.

Stocks tumbled immediately after the report’s release. But equities soon reversed course, working their way back into positive territory by late morning and rising from there.

The early action after the report was knee-jerk selling, said Briefing.com analyst Patrick O’Hare, adding that the inflation data -- while disappointing -- was not shocking given other recent economic reports.

The initial reversal was due to technical trading factors. When stocks refused to drop below a key trading level, they did a 180-degree turn and pushed higher.

Maybe now there’s a bottom in place for the time being, O’Hare said.