After yesterday's gains, Wall Street was seen steady on Thursday after the release of US consumer price index (CPI) data yesterday.
With the US CPI inflation data for December rising, investors are expecting the Federal Reserve (Fed) to follow through on its plan to cut interest rates, Wall Street stocks reacted positively.
On Wednesday, the Dow Jones rose 1.65%, the S&P 500 rose 1.83%, and the Nasdaq Composite jumped 2.45%.
The gains came after the latest inflation report showed that prices are moving further away from the Fed's inflation target.
The fall in the US 10-year Treasury yield, from a 14-month high to around 4.65%, dragged bond yields lower, pushing the stock market higher.
Additionally, strong earnings reports from the ‘big banks’ have had a positive impact on the financial sector with JPMorgan jumping 2% after reporting better-than-expected profits and raising its 2025 earnings outlook.
Wells Fargo (6.6%), Goldman Sachs (6%), Citigroup (6.5%) and Bank of New York Mellon (8.1%) also performed strongly.
