US stocks surged on Wednesday following a positive inflation report and strong bank earnings.

The Dow rose 703 points, or 1.65%, with the S&P 500 up 1.83% and the Nasdaq climbing 2.45%.

Inflation data showed a slowdown in core consumer prices, easing concerns about rising inflation and interest rates.

Robust fourth-quarter profits from major banks, including JPMorgan Chase, Goldman Sachs, Citi, Wells Fargo, and BlackRock, boosted market sentiment.

The VIX, Wall Street’s fear gauge, fell 13%, signaling investor relief, CNN has reported.

Analysts are optimistic about continued market growth despite potential volatility.

Written by B.C. Begley