WATCH: US Stocks Rally on Inflation Data and Bank Earnings: ASX to Open Higher

US stocks surged on Wednesday following the release of the latest consumer price index report, which showed core inflation unexpectedly slowed in December. Additionally, major U.S. banks kicked off the quarterly earnings season with stellar results.
The Dow Jones Industrial Average rose by 703.27 points, or 1.65%, closing at 43,221.55. The S&P 500 gained 1.83%, reaching 5,949.91, while the Nasdaq Composite jumped 2.45%, ending at 19,511.23. It marked the best day for all three major averages since November 6.
The four largest banks – JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo – all posted record or near-record profits.
Meanwhile, December US core CPI came in below expectations, further easing concerns about inflation and reducing the likelihood of further interest rate hikes.
The 10-year Treasury yield sharply declined following the CPI report, falling by approximately 13 basis points to around 4.65%. Growth stocks like Tesla and Nvidia surged, rising about 8% and 3%, respectively, as Treasury yields dropped.
Commodity markets also experienced significant movement. Brent crude oil jumped 2.1% overnight to $US81.61 a barrel, boosted by the ceasefire agreement between Israel and Hamas. Bitcoin also saw a strong surge, briefly surpassing $US100,000 before settling at $US99,826.51.
Looking at the Australian market, the SPU futures are pointing to 1.3 per cent rise.
Australia’s December labour force data could offer insight into inflation.
This morning, Rio Tinto reported a 3% increase in sales volumes for the December quarter, despite flat iron ore production growth. Overall, production growth across commodities was up 1%.
And Meridian Energy experienced an increase in retail sales volumes during the December quarter, despite mixed weather conditions impacting the New Zealand-based renewable energy producer.