The latest U.S. Consumer Price Index showed a surprising slowdown in core inflation for December, leading to a strong rally in U.S. stocks. Major bank earnings have also positively influenced market sentiment as the earnings season kicks off. On this trading day, the Nasdaq opened 305 points higher, or 1.6%, extending its gain to 2% in early trading, closing at 19,427 points. The S&P 500 index rose 62 points, or 1%, to 5,905 points, while the Dow Jones Industrial Average increased by 409 points, or 1%, beginning at 42,927 points, with early gains widening to 700 points, or 1.7%.
The fourth quarter earnings season started strongly, with major bank earnings generally surpassing Wall Street expectations. Goldman Sachs (GS), Citigroup (C), and Wells Fargo (WFC) all saw their stocks rise by 5% after earnings reports, while JPMorgan Chase (JPM) increased by 0.6%.
Tesla (TSLA, Financial) continued to lead the market's upward push, gaining 4% in early trading. Other notable tech stocks also performed well; Nvidia (NVDA) increased by 0.8%, while Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META) each rose by 2% to 3%.
