US stocks surged higher Wednesday after an encouraging inflation report and blockbuster profits for some of America’s biggest banks.

U.S. stocks surged on Wednesday, with all three major indexes registering their biggest daily percentage gains in more than two months, as lower-than-expected December core inflation data and solid earnings from major U.

U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

Benchmarks in Australia, Japan and South Korea all notched gains. The S&P 500 closed Wednesday 1.8% higher, the benchmark’s best day since the November election, which erased its 2025 decline. The tech-heavy Nasdaq 100 climbed 2.

A global equities gauge rallied on Wednesday while U.S. Treasury yields fell after data showed core U.S. inflation rose less than expected in December, raising hopes that the Federal Reserve could ease rates further.

Market watchers are now awaiting the release of US consumer-price inflation data later in the day. A below-forecast read on US wholesale prices provided a little relief and helped the Dow and S&P 500 end higher Tuesday,