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

Treasury yields also eased in the bond market following the update on how much more US households had to pay in December for eggs, gasoline, housing and other costs of living. The report said overall inflation accelerated to 2.9 per cent from 2.7 per cent in November.

U.S. stocks are rallying Wednesday after Wall Street and financial markets worldwide got a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from the biggest U.S.