NEW YORK (AP) — U.S. stocks are ripping higher Wednesday after getting a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks are also helping to launch indexes toward their best day in two months.
The S&P 500 was 1.9% higher in afternoon trading. The Dow Jones Industrial Average was up 739 points, or 1.7%, as of 2:36 p.m. Eastern time, and the Nasdaq composite was 2.5% higher.
Treasury yields also eased in the bond market following the update on how much more U.S. households had to pay in December for eggs, gasoline, housing and other costs of living. The report said overall inflation accelerated to 2.9% from 2.7% in November.
While no one wants higher inflation, the numbers were more encouraging underneath the surface. After ignoring prices for food and energy, which can zigzag sharply from month to month, underlying inflation trends slowed to 3.2% in December. Economists had thought it would remain at 3.3% for a fourth straight month, according to FactSet. ... more