US Stocks Rise on Lower Core Inflation
US stocks rose on Wednesday, with the S&P 500 up 1.5%, the Nasdaq jumping 1.7% and the Dow Jones Industrial Average jumping about 650 points, as traders cheered the latest inflation report.
Headline inflation rose for a third straight month to 2.9% in line with expectations, but core interest rates unexpectedly slowed to 3.2% and the core monthly interest rate fell to 0.2%. The data provided little reassurance that the Fed could continue to cut interest rates this year.
Also, corporate earnings results from major banks boosted investor sentiment. JPMorgan shares rose about 0.4% after beating earnings and revenue estimates and raising its 2025 net interest income guidance. Wells Fargo jumped more than 3% after reporting a rise in earnings.
Goldman Sachs rose 4.8% on better-than-expected earnings and revenue, while BlackRock jumped nearly 2.5% as its assets hit a record $11.6 trillion. Citigroup rose 4%, and Bank of New York Mellon rose 6.4% after both beat earnings and revenue estimates.
Source: Trading Economics
