How the banks’ inflation and promising inflation report gave the market the much-needed boost

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In today’s big story Amazing income of American banks and a Expected inflation report As it rises, it has stocks.

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It’s alive!

After a slow start to the year, the stock market has finally shown its appreciation Bank earnings and higher-than-expected inflation data. The S&P 500 ended up 1.83% on Wednesday, while the Dow (1.65%) and tech-heavy Nasdaq Composite (2.45%) posted strong days.

Let’s start with Wall Street. The big U.S. banks represent the unofficial start to earnings season, and they didn’t disappoint. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo It beat all analysts’ expectations.

JPMorgan posted a 50% year-over-year profit for the fourth quarter, while Goldman’s profits jumped an impressive 105%. Banking growth was largely driven by classic Wall Street businesses such as corporate trading, capital raising and trading.

December inflation report Also put more wind in the sails of the market.

At first glance – inflation has risen for the third straight month – the reading may not look good. But a closer look showed that the year-over-year increase in the consumer price index was in line with consensus expectations, which is good.

Better yet, core inflation, which strips out volatile food and energy prices, was slightly below expectations. It also came in below the November numbers.

Before you get ahead of yourself, don’t expect too many price cuts. Instead, the data calmed investors’ nerves by reducing the worrisome rise in the 10-year Treasury yield, which fell 0.14 percent.

“Core inflation is not accelerating and that’s the story,” said Jamie Cox, managing partner of Harris Financial Group.

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