US stocks surged higher Wednesday after an encouraging inflation report and blockbuster profits for some of America’s biggest banks.

A benign December inflation report was all it took to ignite another strong rally on Wall Street, with major indices delivering their best weekly performance since the post-election surge in early November.

Survey finds tariffs, tax cuts and immigration policy could weigh on price outlook for next two years.

Wall Street’s main indexes rose on Tuesday, with the blue-chip Dow at a more than one-month high, as investors assessed President Donald Trump’s executive orders after taking office and awaited his first move on trade policy. In morning trading, the Dow Jones Industrial Average rose 423 points, or 1%, to 43,911.

U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

U.S. stocks rose after more companies said they made bigger profits at the end of last year than analysts expected and as Treasury yields eased.

U.S. stock indexes are rallying toward the close of their best week in two months. The S&P 500 rose 1.1% Friday.

Wall Street's main indexes closed higher on Tuesday, with the S&P 500 and the Dow hitting their highest in more than a month, as investors assessed Donald Trump's first actions as U.S. president and breathed relief that he did not start his second term with blanket tariff increases.

U.S. inflation picked up last month as gas prices rose sharply, though price gains for other goods and services were more muted.

US stocks jumped on Wednesday after consumer price data showed inflation continues to slow. Strong bank earnings also helped lift sentiment.

World stocks are mixed follow Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of the Federal Reserve’s rate cuts.

Asian shares are mixed after gains for oil and gas producers helped offset drops for Nvidia and other Big Tech companies on Wall Street.