Stocks rally, dollar slumps as US inflation eases

Stocks rallied while the dollar slumped against rival currencies on Thursday after a drop in US inflation dimmed expectations of more aggressive Federal Reserve rate hikes.

On Wall Street, the Dow gained nearly a thousand points in late morning trading, or 3.0 percent.

The broader S&P 500 jumped 4.5 percent and the tech heavy Nasdaq Composite soared 5.9 percent.

While the annual inflation rate was down from a harsh 9.1 percent in June -- the highest in 40 years -- latest numbers are unlikely to bring quick reprieve from the Federal Reserve's aggressive moves to cool the economy.

The Russia war in Ukraine has sent food and fuel prices soaring, and the energy index surged 17.6 percent over the past 12 months, according to the data.