Major U.S. equities indexes notched strong gains in the midweek trading session after several banks released upbeat earnings reports. Data from the latest Consumer Price Index (CPI) report also helped underpin the rally, as indications of a cooldown in “core” inflation in December reinvigorated optimism that the Federal Reserve might implement additional interest-rate cuts in 2025.
The S&P 500 surged 1.8% on Wednesday. Outperformance among several financial sector components helped drive the Dow 1.7% higher, while the recalibrated rate-cut outlook buoyed the tech-heavy Nasdaq, which jumped 2.5%.
Tesla (TSLA) shares drove 8% higher, logging the strongest performance in the S&P 500, following reports of a strong first day of orders in China for the carmaker’s updated Model Y electric vehicle (EV). The refreshed sport utility vehicle (SUV) is expected to become available in U.S. and European markets within several months. In addition, Morgan Stanley analysts predicted that Tesla stock could reach as high as $800 …