The Dow soars 600 points as inflation cools and bank earnings slay

May Be Interested In:Ex-Skydance Executive Pleads Guilty To “Recklessly” Operating Drone That Crashed Into Super Scooper During L.A. Wildfires – Update


Photo: Spencer Platt (Getty Images)

In This Story

The Dow surged 600 points after the latest core inflation report indicated a slowdown, bolstered further by strong banking earnings.

According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) for December increased by 0.4%, slightly higher than the anticipated 0.3%. This rise brought the 12-month inflation rate to 2.9%, which aligns with expectations. In contrast, the core CPI, excluding the more volatile food and energy prices, saw a monthly increase of 0.2%, below the expected 0.3%. Additionally, the year-over-year core CPI rose by 3.2%, also cooler than 3.3% forecasted.

The favorable retail inflation figures, combined with a lower-than-anticipated producer price index (PPI) report from the previous day, indicate that the Federal Reserve is nearing its 2% inflation goal. These reports also bolster optimism regarding potential interest rate reductions later this year.

In the afternoon, the Dow Jones Industrial Average jumped 645 points, or 1.5%. The tech-heavy Nasdaq and S&P 500 added 2.1% and 1.6%, respectively. Meanwhile, the 10-year Treasury yield dropped to 4.686%.

Shares of banking giants are up 

Major banking firms released their financial reports this morning, and most of their earnings exceeded expectations. JPMorgan’s (JPM+1.72%) stock rose after reporting earnings per share of $4.81 for the last quarter, surpassing the expected $4.11. Shares of Wells Fargo (WFC+6.25%), Goldman Sachs (GS+5.40%), and Citigroup (C+6.96%) were also up after beating the quarterly estimates.

share Share facebook pinterest whatsapp x print

Similar Content

High school basketball: Thursday's scores for boys' and girls' games
High school basketball: Thursday’s scores for boys’ and girls’ games
You can get really great Black Friday deals for less than $50
You can get really great Black Friday deals for less than $50
'You are underperforming' - Man Utd star told to leave club by Old Trafford flop
‘You are underperforming’ – Man Utd star told to leave club by Old Trafford flop
Crashed plane
Trump’s 8-Month Severance Deal: Bold Reform Or Red Flag?
Kitigan Zibi Anishinābeg calls for safe passage for American eels on the Ottawa River | CBC News
Kitigan Zibi Anishinābeg calls for safe passage for American eels on the Ottawa River | CBC News
Absolute Best Black Friday Deals
Absolute Best Black Friday Deals
Breaking Barriers: The Stories that Move Us | © 2025 | Daily News