(Bloomberg) — Wall Street traders drove stocks higher and bond yields lower after the latest inflation data showed signs that price pressures are gradually abating.
Equity futures wiped out losses after data showed the core consumer price index rose in December by less than expected. Treasury yields were mostly lower across the curve, with those on two-year notes approaching 3.5%. The dollar wavered.
The core CPI, excluding the often volatile food and energy categories, increased 0.2% from November, according to Bureau of Labor Statistics data out Tuesday. On an annual basis, it advanced 2.6%, matching a four-year low.
Meantime, JPMorgan Chase & Co. edged up after kicking off the industry’s results Tuesday, with megabank rivals Bank of America Corp., Wells Fargo & Co, Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley slated for Wednesday and Thursday. The group is expected to post its second-highest annual profit ever, boosted by President Donald Trump’s policy changes.
Corporate Highlights:
JPMorgan Chase & Co.’s investment-banking fees unexpectedly fell in the fourth quarter, missing the firm’s own guidance from just last month as revenue from both underwriting and advising on mergers declined. Still, JPMorgan said in a presentation accompanying the results that it expects to earn about $103 billion in net interest income this year, more than analysts expected. Bank of New York Mellon Corp.’s profit beat analysts’ estimates, driven by gains in fee revenue and interest income. US Bancorp, the country’s largest regional bank, will acquire brokerage BTIG for $1 billion as it looks to push deeper into investment banking and trading. Meta Platforms Inc. is beginning to cut more than 1,000 jobs from the company’s Reality Labs division, part of a plan to redirect resources from virtual reality and metaverse products toward AI wearables and phone features. Intel Corp. and Advanced Micro Devices Inc. rallied after KeyBanc Capital Markets upgraded the shares to overweight from sector weight, noting that the chipmakers have largely sold out their server CPU in 2026. Delta Air Lines Inc. is ordering 30 Boeing Co. 787 Dreamliner jets in its first-ever purchase of that model, providing a boost to the US planemaker that highlights the airline’s optimism for international travel demand. The midpoint of the carrier’s full-year 2026 profit forecast fell short of Wall Street expectations, sending its shares down as much as 6% in US premarket trading and dragging down rivals. The US Department of Defense is set to invest in L3Harris Technologies Inc.’s missile unit with a $1 billion convertible preferred security, tightening the direct links between the US government and a major defense contractor. Orsted A/S shares surged after a US judge ruled work can resume on a wind farm off the coast of Rhode Island as the company challenges the government’s latest attempt to halt offshore projects. Volkswagen AG’s namesake brand is projecting rising electric-vehicle sales this year as the German automaker prepares a range of affordable plug-in models. Bayer AG’s pharmaceuticals unit is on track for a return to growth as new drugs for cancer and kidney disease offset sales lost to patent expirations. China Vanke Co. presented revised proposals to extend two local bonds that included collateral pledges as well as longer grace periods, according to people familiar with the matter, as the distressed developer struggles to stave off default. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.1% as of 8:38 a.m. New York time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average were little changed The Stoxx Europe 600 was little changed The MSCI World Index rose 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1663 The British pound was little changed at $1.3472 The Japanese yen fell 0.4% to 158.82 per dollar Cryptocurrencies
Bitcoin rose 1.3% to $92,197.85 Ether rose 1.8% to $3,144.76 Bonds
The yield on 10-year Treasuries was little changed at 4.18% Germany’s 10-year yield advanced two basis points to 2.86% Britain’s 10-year yield advanced two basis points to 4.39% The yield on 2-year Treasuries declined two basis points to 3.52% Commodities
West Texas Intermediate crude rose 1.9% to $60.63 a barrel Spot gold rose 0.3% to $4,612.48 an ounce ©2026 Bloomberg L.P.
