After this, American shares rose on Wednesday inflation data Investors’ expectations of an interest rate cut by the Federal Reserve this year increased.
Market participants also cheered strong quarterly results from the biggest US banks.
At 09:41 a.m. ET the Dow Jones Industrial Average rose 613.51 points, or 1.44 percent, to 43,131.79, the S&P 500 rose 85.16 points, or 1.46 percent, to 5,928.07 and the Nasdaq Composite added 335.07 points, or 1.76 percent. , to 19,379.64.
At the opening bell, the Dow Jones Industrial Average rose 409.5 points, or 0.96 percent, to 42,927.76. The S&P 500 rose 62.3 points, or 1.07 percent, to 5,905.21, while the Nasdaq Composite added 305.9 points, or 1.61 percent, to 19,350.313.
inflation statistics
A Labor Department report showed that the consumer price index (CPI) rose 2.9 percent on an annual basis in December 2024, the highest since last July.
The index rose 0.4 percent on a monthly basis. CPI was at 2.7 percent in November.
Excluding volatile food and energy components, the core CPI increased by 3.2 percent on an annual basis.
The latest inflation data strengthens the case that the Federal Reserve’s interest rate cut cycle is far from over.
The Fed will hold its next monetary policy meeting on January 28-29.
bank stock
JPMorgan Chase’s stock rose 0.6 percent after the lending giant posted a record annual profit in the fourth quarter, while Wells Fargo rose 4.2 percent after reporting fourth-quarter profit that beat Wall Street estimates.
Goldman Sachs gained 4.9 percent after reporting better quarterly profit. Citigroup added 3.9 percent. After its earnings.
In the bond market, the yield on the 10-year Treasury fell to 4.65 percent from 4.79 percent late Tuesday. The 2-year Treasury yield fell to 4.26 percent from 4.37 percent.
bullion
gold prices Gains extended on Wednesday as the US dollar slipped following inflation data.
Spot gold rose 0.4 percent at $2,688.19 an ounce by 0915 a.m. ET (1415 GMT). US gold futures were up 1.1 percent at $2,711.40.
Spot silver strengthened 1 percent to $ 30.23 an ounce.
