Global shares rally as US price inflation slows

Slowdown in inflation could give the Federal Reserve cover to start scaling back the size of its interest rate increases

The S&P 500 jumped as much as 2.8% and the tech-heavy Nasdaq 100 rose as much as 4% during the session, before paring gains after a key gauge of US consumer prices posted the smallest monthly advance in more than a year. 

Global shares climbed after a rally was sparked by an unexpectedly strong slowdown in US price growth last month, as attention turned to whether the US Federal Reserve will alter its aggressive approach to battling inflation.

The S&P 500 jumped as much as 2.8% and the tech-heavy Nasdaq 100 rose as much as 4% during the session, before paring gains after a key gauge of US consumer prices posted the smallest monthly advance in more than a year.