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US consumer prices rise slightly above expectations in Dec

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JPMorgan ( JPM ), Wells Fargo ( WFC ), Goldman Sachs ( GS ) post higher Q4

profits

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BlackRock ( BLK ) assets hit record $11.6 trillion in Q4

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Indexes up: Dow 1.44%, S&P 500 1.46%, Nasdaq 1.76%

(Updates after market open)

By Johann M Cherian and Sukriti Gupta

Jan 15 (Reuters) -

Wall Street's main indexes surged on Wednesday, with the

benchmark S&P 500 at a one-week high, propelled by

lower-than-expected core inflation data for December and robust

quarterly earnings from the biggest U.S. banks.

At 09:41 a.m. ET the Dow Jones Industrial Average

rose 613.51 points, or 1.44%, to 43,131.79, the S&P 500

gained 85.16 points, or 1.46%, to 5,928.07, and the Nasdaq

Composite rose 335.07 points, or 1.76%, to 19,379.64.

The domestically focused small-cap Russell 2000 index

jumped 2.3%.

A

Labor Department report

showed the consumer price index rose in line with

expectations in December. Still, markets were focused on core

CPI figures, which advanced 3.2%, lower than estimates of a 3.3%

rise.

Traders were pricing

nearly even odds

that the Federal Reserve will cut interest rates twice by

the end of 2025, with the first reduction to come in June.

The yield on the benchmark Treasury note

dipped from its 14-month high and was last at 4.64%, aiding a

2.2% gain in real estate stocks, which led advances

among the 11 S&P 500 sectors.

Markets were also focused on quarterly earnings from

major banks.

JPMorgan Chase & Co ( JPM ) climbed 0.6% after the

lending giant posted a

record annual profit in the fourth quarter, while Wells

Fargo ( WFC ) added 4.2% after its fourth-quarter profit beat

Street expectations as a rebound in dealmaking activity boosted

its investment banking business.

Goldman Sachs ( GS ) gained 4.9% after posting its

best quarterly profit

since the third quarter of 2021, while Citigroup ( C/PN )

swung to a

profit in the fourth quarter

, sending its shares up 3.9%.

"It's a confluence of two bullish factors," said Adam

Sarhan, chief executive of 50 Park Investments.

"One, you've got inflation that is not out of control,

so it leaves the door open for more easy money from the Fed. And

two, you have earnings from the big banks, which are coming in

so far as being bullish."

The S&P 500 banks Index rose 1.9%, setting it

on track to log gains of about 5% in January. The index has

outperformed Wall Street's main indexes, which are poised to

notch modest gains for the month, including Wednesday's

advances.

In 2024, the banking index logged its biggest annual jump

since 2019 on expectations that U.S. President-elect Donald

Trump's policies, such as tax cuts and loose regulations, could

boost the financial sector.

Of the 28 companies in the S&P 500 that have reported

fourth-quarter earnings to date, 82.1% have surpassed estimates,

according to data compiled by LSEG.

Remarks from New York Fed President John Williams and

Chicago Fed President Austan Goolsbee will be parsed later in

the day. The central bank is also slated to unveil its beige

book on economic activity at 2:00 p.m. ET.

BlackRock ( BLK ) rose 3.9% after its assets hit a record

high of $11.6 trillion in the fourth quarter.

Advancing issues outnumbered decliners by a 13.19-to-1

ratio on the NYSE, and by a 4.74-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 37 new highs and 25 new

lows.