The New York stock market started on an upward trend. The latest figures from the Consumer Price Index (CPI) alleviated concerns about a rate hike due to the re-ignition of inflation and were attributed to the strong performances of major corporations.
According to the New York Stock Exchange (NYSE), as of 10:30 a.m. local time on the 15th, the Dow Jones Industrial Average rose by 685.70 points (1.61%) to 43,203.98. The Standard and Poor's (S&P) 500 index increased by 103.07 points (1.76%) to 5,945.98, while the Nasdaq Composite index jumped 444.47 points (2.33%) to 19,488.87.
The CPI for December, announced that day, matched market expectations, bringing relief to investors. According to the U.S. Department of Labor, the December CPI rose by 0.4% compared to the previous month. The year-on-year increase was 2.9%, slightly up from the previous month's 2.7%, but still in line with market expectations.
As inflation concerns and worries about a halt in interest rate cuts diminished due to slowing consumer prices, stock prices saw a significant increase; however, the yields on U.S. Government Bonds, which had been on an upward trend last year, plummeted. One hour after the market opened, the yield on the 10-year U.S. Government Bonds was at 4.639%, down 14.9 basis points from the previous day.
Stocks rose as major corporations reported their earnings for the day. Goldman Sachs noted a surge in net income, more than doubling compared to the same period last year, resulting in a stock increase of more than 6%. Goldman Sachs' fourth-quarter revenue and earnings per share (EPS) significantly exceeded market expectations.
Citigroup's stock jumped over 7% thanks to an earnings report where both revenue and EPS surpassed market expectations. JPMorgan Chase also reported a surprise strong performance with fourth-quarter revenue up 10% year-on-year and net income surging by 50%. However, its stock rose only by 1%.
Meanwhile, European markets also showed a joint upward trend. The German DAX index rose by 1.56%, the UK FTSE index increased by 1.15%, and the pan-European STOXX 600 index climbed by 1.32%.