Stocks rise as core inflation slows, banks rise after strong fourth-quarter earnings, Treasury yields plunge – Assurant (NYSE:AIZ)

Major stock indexes rose on Wednesday after December inflation data showed underlying price pressures slowed, easing concerns about a prolonged pause in interest rate cuts by the Federal Reserve.

The overall consumer price index rose 2.9% year-on-year in December, higher than November’s 2.7%, in line with economists’ forecasts. On a monthly basis, headline inflation rose 0.4%, accelerating from a 0.3% surge in November and marking the largest monthly increase since March 2024.

The core inflation rate, which excludes volatile food and energy prices, increased by 3.2% annually, slightly below expectations of 3.3%. Core prices increased 0.2% quarter-to-quarter, in line with expectations.

Inflation data boosted expectations for a rate cut by the Federal Reserve in 2025.

Bond yields fall, financial stocks soar, Wall Street gains

S&P 500 Index – by SPDR S&P 500 ETF Trust spy – Stocks surged 1.5% in early trading in New York, with financial stocks leading gains after major banks reported strong fourth-quarter profits.

JPMorgan Chase & Co. JPMorgan Chase, Citigroup C, Goldman Sachs Group Inc. GS, Wells Fargo world financial center, bank of new york mellon Buck and BlackRock black All companies beat fourth-quarter profit estimates and issued upbeat guidance, reiterating that the financial sector was booming through the end of last year.

this Financial Select Sector SPDR Fund XLF rose 2.2%, leading all S&P 500 sectors, while SPDR S&P Regional Banks ETF Korea Real Estate Association It rose 3.4%, reflecting strong performance from regional banks.

The Dow gained 1.6% and the Russell 2000 outperformed, rising 2.6%. Technology stocks, tracking Invesco QQQ Trust, Series 1 QQThe stock rose 1.7%, driven by lower U.S. Treasury yields.

The policy-sensitive 2-year bond yield fell 9 basis points to 4.27%, and the 30-year bond yield fell 9 basis points to 4.88%. this iShares 20+ Year Treasury Bond ETF TLT Stocks rose 1.6% as bond prices rose.

Bitcoin Bitcoin/USD The dollar rose 2% to above $99,000, supported by growing hopes of a rate cut by the Federal Reserve. gold, made of SPDR Gold Trust GLDadd 0.5%.

Top movers

S&P 500 gainers:

• Texas Pacific Land Company TPL:+5.85%
• BlackRock:+5.54%
• Assurant Corporation Artificial Intelligence Zone:+5.49%
• biotechnology company science and technology:+5.36%
• Citigroup:+5.16%

Nasdaq 100 index trend:

• Kopat Corporation CPRT:+4.62%
• intuitive surgical inc. ISRG:+4.60%
• AppLovin Company app:+4.43%
• Palantir Technologies PLTR:+4.30%
• trading desk corp. TTD:+3.39%

Invesco KBW Bank ETF top gainer KB:

• Citigroup:+5.27%
• Wells Fargo:+4.80%
• bank of new york mellon:+4.35%
• western alliance bank Wall:+4.13%
• Goldman Sachs Group Inc.:+4.02%

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Image created using artificial intelligence via Midjourney.