Technology stocks soared Thursday, leading broader markets higher after a key government report showed the rate of inflation may be slowing.

The Dow Jones Industrial Average gained 1,198.27 points, or 3.69%, to close at 33,712.21. The S&P 500 rose 207.31 points, or 5.53%, to close at 3,955.88, and the tech-heavy Nasdaq Composite surged 760.97 points, or 7.35%, to close at 11,114.15.

It marked Wall Street's best day since April 2020.

The Labor Department reported October's Consumer Price Index increased over the previous year by 7.7%, which was 0.2% lower than forecast and 0.5% lower than September's report.

The CPI measures the costs of good and services and its the first time the rate of inflation has fallen below 8% since February. The Federal Reserve has hiked interest rates 0.75% on four successive occasions this year and indicated more increases are likely.

Technology stocks have been particularly hit hard by rising interest rates and inflation, which remains at a four-decade high.

Some of the tech stocks that saw sharp gains included Apple (AAPL), which closed at $146.87, up $12.00, or 8.90%. Amazon's (AMZN) price of shares rose $10.49, or 12.18%, to close at $96.63.

"Inflation is still too high, but there is evidence that the Fed has turned the corner in its fight and that the pace of future interest rate increases will begin to slow," Christopher Rupkey, chief economist at FWDBONDS, told Reuters. "The market is on fire with the long-wished for inflation moderation finally starting to appear."