Wall Street rises sharply after global financial markets received an adrenaline boost thanks to an encouraging inflation report in the USA.
Strong earnings reports from the country’s largest banks also helped the indexes rise. ANDhe S&P 500 rises 1.5%, the Dow Jones Industrial Average climbs 1.6%, and the Nasdaq jumps 2%.
Bond yields ease sharply in the bond market following an update on how much prices rose last month for US consumers. Excluding volatile food and energy prices, underlying inflation trends slowed. JPMorgan Chase, Wells Fargo and Citigroup rose after reporting better-than-expected results.
US stocks react higher as high expectations for bank profits were realized and a crucial update on consumer inflation showed prices rose less than expected in December.
John Kerschnerportfolio manager Janus Hendersonnoted in this regard that the market breathed a sigh of relief when the consecutive inflation indicators, yesterday’s PPI and this morning’s CPI, were slightly below expectations.
He also added that these figures give the Fed the opportunity to remain patient and wait for more data to be published before taking the next step. The bond market has reacted with a significant rally, with rates falling between 10 and 12 basis points across the yield curve, and the 10-year bond staying further away from the psychologically important 5% level.
Wall Street: the expectation
Prior to the December release, the core CPI had remained stuck at a 3.3% annual increase over the past four months. It was the first time since July that the core CPI saw a slowdown in year-on-year price growth.
The 10-year bond yield (^TNX), which had been at its highest level in more than a year and serving as a headwind for stocks, fell more than 12 basis points to 4.66% on Wednesday, following the inflation reading lower than expected.
Traders still see only a 3% chance that the Federal Reserve will lower rates in January, according to the CME FedWatch tool. They remain divided over whether a cut will occur in the second half of this year, with relief in June now more likely.
wall street markets bags
Wall Street rises on positive inflation data and strong bank earnings.
NYSE
Wall Street banks posted record profits thanks to a resurgence in deals and strength in investment banking, which also lifted spirits Wednesday morning. JPMorgan Chase (JPM) met analysts’ optimistic expectations with a second consecutive year of record profits and a 50% increase in fourth-quarter net income. Its annual profit of $58 billion was the highest in the history of American banking. Its stock rose 1% before the bell.
BlackRock (BLK) shares rose after its quarterly profits rose more than 20%, hitting assets of a record $11.6 billion. Shares of Goldman Sachs (GS), Wells Fargo (WFC) and BNY Mellon (BK) also gained after the banks reported strong quarters.
Source: Ambito

I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.