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Stocks surged on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December, and major U.S. banks kicked off quarterly earnings reporting season with blowout results.
The Dow Jones Industrials popped 703.22 points, or 1.7%, to 43,221.55
The S&P 500 Index jumped 106.99 points, or 1.8%, to 5,949.90.
The NASDAQ barreled ahead 466.84 points, or 2.5%, to 19,511.23.
Fourth-quarter earnings reporting got off to a positive start Wednesday, with big banks managing to broadly top the Street’s expectations.
JPMorgan Chase shares rose nearly 2% after the bank reported an EPS and revenue beat, which was driven by strong fixed income trading and investment banking results.
Shares of Goldman Sachs popped 6% after the bank posted a top- and bottom-line beat in the previous quarter, and Wells Fargo shares jumped more than 7% after the bank said net interest income would be 1% to 3% higher in 2025. Citigroup also gained 7% after beating fourth-quarter estimates.
December’s consumer price index showed that core inflation, which excludes food and energy, rose 3.2%, the Bureau of Labor Statistics reported Wednesday. This was a notch down from the previous month and lower than the 3.3% estimated by economists surveyed by Dow Jones. Meanwhile, the 0.4% month-over-month uptick in headline inflation came in slightly above the 0.3% forecast by economists. On a 12-month basis, headline inflation increased 2.9%, which came in line with forecasts.
Prices for the 10-year Treasury were higher, lowering yields to 4.65% from Tuesday’s 4.66%. Treasury prices and yields move in opposite directions.
Oil prices pushed higher $3.03 to $80.53 U.S. a barrel.
Prices for gold flew $37.60 an ounce to $2,719.90 U.S.
