Wall Street rally lifts Nasdaq 20% from low as inflation fears ebb

NEW YORK – Wall Street surged on Wednesday, putting the Nasdaq more than 20 percent above its June low, after U.S. inflation slowed more than expected in July and raised hopes the Federal Reserve will become less aggressive on interest rates hikes.

A sharp drop in the cost of gasoline helped the U.S. Consumer Price Index stay flat last month after advancing 1.3 percent in June, the Labor Department said. The CPI rose by a less-than-expected 8.5 percent over the past 12 months after a 9.1-percent rise in June.

The rally came in the wake of the first notable sign of relief for Americans who have watched inflation steadily climb. The Nasdaq now is up 20.8 percent since…

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