Stocks managed to sustain their impressive rallies on Wednesday, which came on the heels of a consumer price index (CPI) that signaled cooling inflation. Traders are now hopeful the reading will inspire the Federal Reserve to revise its hawkish stance. In turn, the Dow registered a 535-point gain, while the Nasdaq also surged, with both settling at their highest level since May. Meanwhile, the S&P 500 snapped a four-day losing streak with its best single-day percentage win in two weeks, and the Cboe Volatility Index (VIX) saw its worst day since June 15.

The Dow Jones Average (DJI - 33,309.51) gained 535.1 points or 1.6% for the day. Walt Disney (DIS) led the gainers, adding 4%. Merck (MRK) paced the laggards, falling 0.4%.

The S&P 500 Index (SPX -4,210.24) rose 87.8 points or 2.1% for the day. Meanwhile, the Nasdaq Composite (IXIC - 12,854.81) added 360.9 points or 2.9% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 19.74) shed 2 points or 9.3% for the day.

DROP IN U.S. GAS INVENTORIES BOOST OIL PRICES

Oil prices finished higher on Wednesday, after U.S. gasoline inventories saw a steeper-than-expected fall, according to new Energy Information Administration (EIA) data. Plus, U.S. crude inventories rose 5 million barrels for the week, while refinery utilization came in above expectations at 94.3%. September-dated crude added $1.43, or 1.6%, to settle at $91.93 per barrel for the day.

Gold prices also higher as well, after today's economic data revealed inflation is cooling off. In addition, the U.S. dollar and Treasury yields pulled back, and brokerage J.P. Morgan Securities reduced its forecast for gold. In turn, December-dated gold rose $1.40, or 0.1%, to close at $1,813.70 an ounce.

More By This Author:

Dow Extends Post-CPI Jump Into Midday Trading
S&P 500 Logs 4th-Straight Loss, Nasdaq Sheds 150 Points
Nasdaq Eyes Triple-Digit Drop, 3rd-Straight Daily Loss