© Reuters.
By Liz Moyer
Investing.com — U.S. stocks were in a sharp reversal, rising after earlier losses as investors absorb inflation data for September that showed inflation is running hotter than expected.
At 11:55 ET (15:55 GMT), the was up 543 points or 1.8%, while the was up 1.7% and the was up 1.5%.
The inflation report gives the Federal Reserve more reason to continue on its aggressive path of interest rate hikes when it meets in early November.
The rose 8.2% for the year ending in September, a notch more than expected. , which doesn’t include food and fuel, rose 6.6%, also a notch more than expected.
A day earlier, data on producer prices showed inflation in that segment also rose more than expected last month.
The is now that the Fed will raise rates by another 0.75 percentage point, which would be the fourth such hike in a row as it works to beat down inflation. from its meeting in September showed the policymakers are determined to beat inflation, despite the risk of pain in the economy.
Grocery giant Kroger (NYSE:) is talking to rival Albertsons (NYSE:) about a possible deal, according to multiple reports, and an announcement could come this week. Kroger shares were down 1.1%, while Albertsons shares jumped 11%.
Applied Materials Inc (NASDAQ:) shares were up 4.4%% after it warned on revenue for the fiscal fourth quarter, saying new rules about exports to China would cut into results.
Walgreens Boots Alliance Inc (NASDAQ:) shares rose 5% after it and raised its outlook for sales.
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