Stock market today: Dow, S&P 500, Nasdaq soar as inflation cools, bank earnings shine

Published On Jan 15, 2025, 2:08 PM

US stocks experienced a significant rally, driven by positive bank earnings and lower-than-expected consumer inflation data for December. The S&P 500 rose over 1.7%, the Dow jumped more than 1.6%, and the Nasdaq surged 2.3% following a report indicating that core Consumer Price Index (CPI) rose by only 0.2% month-on-month, easing inflationary pressure. Major banks like JPMorgan Chase and Goldman Sachs reported record profits, contributing to positive market sentiment. The 10-year Treasury yield fell, which typically supports stock market performance.

Stock Forecasts

JPM

Positive

The market's positive response to easing inflation and strong bank earnings suggests potential growth. Investors may see this as an opportunity in major bank stocks and the broader market indices, anticipating further economic recovery and interest rate cuts later in the year.

QQQ

Positive

Given the rally in tech-heavy indices and the favorable economic outlook, tech stocks could also benefit, particularly in a lower interest rate environment, suggesting a positive outlook for the Nasdaq.

XLE

Positive

Lower oil inventories and rising oil prices could indicate potential for gains in energy stocks, suggesting investors might find opportunities in oil-related investments given the current market trends.

Related News

The largest banks, including JPMorgan Chase, Wells Fargo and Goldman Sachs, reported bumper profits on Wednesday.

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WFC
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The nation's largest bank earned $14 billion in the final quarter of 2024 due largely to a Wall Street revival, pushing its annual haul to an all-time record of $58 billion.

A better than-expected- consumer inflation report sparked a rally in stocks on Wednesday.

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