US stock markets post historic turnaround after inflation figures

Dusseldorf, Frankfurt The prospect of a sustained rate hike by the Fed only sent Wall Street down briefly on Thursday. The US standard value index Dow Jones quickly turned positive and closed 2.8 percent higher at 30,038 points. The tech-heavy Nasdaq advanced 2.2 percent to 10,649 points. The broad S&P 500 gained 2.6 percent to 3669 points.

The initial sell-off was a bit overdone, said Shawn Cruz, chief investment strategist at brokerage firm TD Ameritrade. He thinks it’s a good sign that there are no follow-up sales. However, Craig Erlam, market analyst at brokerage house Oanda, warned against declaring a trend reversal. “This is really not an inflation report that you want to see.”