US Stocks Surge Following Cooler Inflation Data and Strong Bank Earnings

Markets rallied as December's inflation showed signs of easing and major banks reported robust quarterly profits.

The Consumer Price Index (CPI) for December revealed core inflation rose 3.2% annually, slightly below expectations, marking progress toward the Federal Reserve's 2% target.
US Treasury yields dropped significantly, with the 10-year yield falling to 4.65%, easing pressure on equities and boosting investor sentiment.
Major US banks, including JPMorgan Chase, Goldman Sachs, and Wells Fargo, reported stronger-than-expected profits, driven by a revival in investment banking and trading revenue.
The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all posted their best single-day performances since November, driven by optimism over inflation and earnings data.
Global markets also benefited, with European indexes rising and Australian shares projected to open higher following Wall Street's rally.