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 DJIA, +2.83% jumped more than 800 points to close 2.8% higher, while the S&P 500 SPX, +2.60% gained 2.6% and the Nasdaq Composite COMP, +2.23% 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.