Bank Earnings, Soft Inflation Help Boost Index | Global News Avenue

Major U.S. stock indexes rose strongly in midweek trading after several banks released upbeat earnings reports. Data from the latest Consumer Price Index (CPI) report also helped support the rally as there were signs that ‘Core’ inflation cooling December’s news reignited optimism that the Federal Reserve could implement further rate cuts in 2025.

The S&P 500 surged 1.8% on Wednesday. Outperformance across several financial sectors helped the Dow Jones rise 1.7%, while the renewed prospect of rate cuts boosted the tech-heavy Nasdaq, which rose 2.5%.

Tesla (TeslaThe automaker’s shares rose 8%, becoming the S&P 500’s strongest performer, after reports of strong first-day orders in China for its updated Model Y electric vehicle (EV). The updated sport-utility vehicle (SUV) is expected to go on sale in the U.S. and European markets within a few months. In addition, Morgan Stanley analysts predict that Tesla’s stock price could reach as high as $800 per share next year.

Bank of New York Mellon (buck) is one of the financial companies posted positive resultsrising fee income and falling non-interest expenses helped the bank beat quarterly profit expectations. While the Bank of New York CEO highlighted uncertainty related to the incoming presidential administration’s tariff proposals and an unclear forecast for interest rates, he emphasized the bank’s positive momentum heading into 2025. Bank of New York Mellon shares also rose 8.1%, leading bank stocks higher on Wednesday.

While bank earnings dominated the financial headlines, another strong performance came from Intuitive Surgical (ISRG), shares rose 7.7% after the medical technology company released preliminary fourth-quarter results. Sales increased 25% year-on-year, exceeding consensus market expectations, and the number of surgeries performed using the company’s da Vinci surgical platform increased 18% compared with the same period last year. The increase in the number of procedures is helping Intuitive boost sales of its disposable instruments and accessories, but the company expects growth in the number of global procedures to slow slightly in 2025.

lululemon sport (Lulu) The company’s shares fell 3.1% on Wednesday, the largest decline among S&P 500 stocks. The stock initially moved higher on Monday after the maker of yoga and other apparel raised quarterly sales and profit guidance, underscoring a strong performance during the holiday season. Since then, however, Lululemon’s stock price has experienced volatility and has been unable to hold on to those gains.

Shares of generic drug maker Viatris (VTRS) fell 2.8% on Wednesday. Last month, the U.S. Food and Drug Administration (FDA) restricted imports of 11 generic drugs produced at Viatris’ Indian plant, citing manufacturing, handling and quality control violations at the plant. Wednesday’s decline marks the stock’s continued decline since the FDA restrictions were announced.

Hershey (HSY) The stock price fell 2.3% that day. Immediately after the market closed last week, the chocolate maker announced that CEO Michelle Barker planned to leave the company. Uncertainty surrounding the leadership team emerged shortly after major Hershey shareholders rejected a takeover bid from snack food giant Mondelez.Yideliz) This would create the largest candy company in the world.