(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

*

US consumer prices rise slightly above expectations in Dec

*

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

profits

*

Israel, Hamas reach peace deal to end Gaza war, official

says

*

Fed's beige book due at 2 p.m. ET

*

Indexes up: Dow 1.34%, S&P 500 1.38%, Nasdaq 1.87%

(Updates with mid-session trading)

By Johann M Cherian and Sukriti Gupta

Jan 15 (Reuters) -

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

benchmark S&P 500 touching a one-week high, driven by

lower-than-expected December core inflation data and robust

quarterly earnings from major U.S. banks.

At 11:37 a.m. ET, the Dow Jones Industrial Average

rose 570.93 points, or 1.34%, to 43,089.21, the S&P 500

gained 80.82 points, or 1.38%, to 5,923.73 and the Nasdaq

Composite gained 356.93 points, or 1.87%, to 19,401.33.

The domestically focused small-cap Russell 2000 index

jumped 1.6%.

A

Labor Department report

showed the consumer price index rose in line with

expectations in December. Still, markets were focused on the

core CPI figure, which advanced 3.2%, lower than estimates of a

3.3% rise.

Traders were pricing in

nearly even odds

that the U.S. Federal Reserve will cut interest rates twice

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

The yield on the benchmark Treasury note

dipped from its 14-month high and was last at 4.66%.

Nine of the 11 S&P 500 sectors traded higher, with

communication services leading advances with a 2.2%

rise. The S&P 500 was poised for its biggest daily jump since

November 6.

Investors were relieved by a long-awaited

ceasefire deal between Israel and Hamas

, paving the way to potentially ending the 15-month-long

Gaza war that has upended the Middle East.

Markets were also focused on strong quarterly results

from major banks.

JPMorgan Chase & Co ( JPM ) climbed 1.4% after the

lending giant posted a

record annual profit in the fourth quarter, while Wells

Fargo ( WFC ) added 6.1% after its fourth-quarter profit beat

Street expectations as a rebound in dealmaking activity boosted

its investment banking business.

Goldman Sachs ( GS ) gained 4.7% 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 5.6%.

"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 2.9%, on track to

log gains of about 6% in January. It 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.

New York Fed President John Williams reiterated the U.S.

central bank's dependence on data at a time when it must

navigate a high level of uncertainty, largely driven by

anticipated policy changes by the incoming administration.

The Fed is also slated to unveil its beige book on

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

BlackRock ( BLK ) rose 3.8% after its assets hit a record

high of $11.6 trillion in the fourth quarter.

Advancing issues outnumbered decliners by a 5.59-to-1

ratio on the NYSE, and by a 2.95-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and seven new

lows, while the Nasdaq Composite recorded 48 new highs and 63

new lows.