Wall Street Rises on Inflation Data and Q4 Earnings
Wall Street’s main indices posted solid gains on Wednesday, supported by consumer inflation data aligning with forecasts and boosted by stronger-than-expected quarterly earnings from major banks.
The Dow Jones Industrial Average, comprising 30 leading companies, rose 1.65% to close at 43,221.55 points. The S&P 500, representing the largest companies by market value, gained 1.83% to end at 5,949.91 points, while the Nasdaq Composite surged 2.45% to 19,511.23 points.
The US Consumer Price Index (CPI) increased 0.4% in December, following a 0.3% rise in November, according to the Department of Labor. On an annual basis, inflation stood at 2.9%, up from 2.7% in November.
This data renewed market optimism that the Federal Reserve (Fed) might ease its interest rate policies further this year. Previously, such expectations had diminished due to signs of economic strength in the service sector and labor market.
Sector Performance
Adding to the positive momentum, major banks exceeded expectations with their Q4 2024 earnings reports, fueling investor confidence. Stocks like Goldman Sachs (+6.02%), Wells Fargo (+6.69%), Citigroup (+6.49%), and JP Morgan (+1.97%) posted strong gains.
Among sectors, consumer staples was the only one to close in the red, dipping 0.09%, while consumer discretionary (+3.02%) and communication services (+2.66%) led the advances.
In the Dow Jones, apart from Goldman Sachs, notable gainers included American Express (+3.98%) and Nvidia (+3.4%).
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