Price increases moderated in the United States last month in the latest sign that the inflation pressures that have gripped the nation might be easing as the economy slows and consumers grow more cautious.

The news sent Wall Street futures up more than 800 points, according to CNBC, and sent stocks galloping toward their best day in years Thursday as exhilaration sweeps Wall Street and financial markets worldwide after a report showed inflation in the United States slowed last month by even more than expected.

The S&P 500 was 3.3% higher in early trading, while the data sent prices immediately jumping in markets for everything from metals to European stocks. Even bitcoin clawed back some of its steep plunge from prior days caused by the crypto industry’s latest crisis of confidence.

The Dow Jones Industrial Average was up 713 points, or 2.2%, at 33,227, as of 9:43 a.m. Eastern time, while the Nasdaq composite soared 4.4%.

But N.C. State economist Dr. Michael Walden says the news wasn’t likely good enough to prevent more interest rate hikes from the Federal Reserve.

“There are two messages in the new data.  First, inflation is still a problem, running well-above the Federal Reserve’s target rate of 2%.  Most people will not be cheering that the rate was more modest in October. ,” Walden told WRAL TechWire.

“The second message is for Federal Reserve policy.  The good news is the inflation rate is trending in the right direction – down.   The bad news is the current rate is far from their target.  Hence, I would expect further rate hikes from the Fed.”

Consumer inflation reached 7.7% in October from a year earlier and 0.4% from September, the Labor Department said Thursday. The year-over-year gain was the smallest since January. Excluding volatile food and energy prices, “core” inflation rose 6.3% in the past 12 months and 0.3% from September.

The numbers were all lower than economists had expected.

Jobs market remains healthy: unemployment claims climb slightly

Even with last month’s tentative easing of inflation, the Federal Reserve is widely expected to keep raising interest rates to try to stem persistently high price increases. Many economists warn, though, that in continuing to aggressively tighten credit, the Fed is likely to cause a recession by next year.

“Today’s CPI report shows inflation is moving in the right direction,” said Eric Merlis, managing director, co-head of global markets at Citizens. “The report provides ammunition for the Fed to begin pricing in sub 75-basis-point tightenings. This will be a welcome development for the Fed.”