The U.S. stock market surged Wednesday, with all major indexes posting strong gains. The Nasdaq, heavily weighted toward tech stocks, reversed a six-day losing streak, rallying sharply after a recent downturn since early January.
Meanwhile, the Dow Jones Industrial Average and the S&P 500 extended their winning streaks for the third consecutive day, continuing the positive momentum that began on Friday.
The latest U.S. inflation data buoyed investors, as December’s core Consumer Price Index (CPI) came in below market expectations. This eased concerns about a potential rebound in inflation, prompting a wave of stock purchases across the board.
Among the big winners were the M7 tech stocks, which rose by more than 2%, except for Apple. Tesla, in particular, soared by over 8%, reflecting the broader market rally.
Quantum computing stocks also saw significant gains, continuing their upward momentum for a second day in a row, as investors piled into the sector.
Strong Earnings Drive Wall Street Banks Higher
Major Wall Street banks also saw significant gains after reporting better-than-expected earnings, driving the rally in financial stocks.
Goldman Sachs surged by $34.39 (6.02%) to close at $605.92 after posting nearly double the profit for Q4.
Citigroup swung from a Q4 2023 loss to a profit, climbing $4.77 (6.49%) to finish at $78.27.
Wells Fargo, the largest bank in the Western U.S., saw its net income jump by 47%, rising $4.76 (6.69%) to $75.95.
JPMorgan Chase, the largest U.S. bank by assets, benefited from a 50% increase in net income, adding $4.88 (1.97%) to close at $252.35.
All four banks posted earnings that far exceeded market expectations. BlackRock’s largest asset manager also experienced a strong rally, rising $50.01 (5.19%) to $1,013.18 following a positive earnings surprise.
Tesla Soars Amid Broad Market Rally
Tesla saw a remarkable 8% surge, climbing $31.86 (8.04%) to close at $428.22. The broader market rally buoyed the stock despite Wells Fargo reiterating its underweight recommendation and setting a target price of $125—71% lower than Tesla’s closing price. Optimism surrounding the potential second term of former President Donald Trump also lifted the stock.
Nvidia, which had been on a downward trajectory for six consecutive days, rebounded strongly, rising $4.48 (3.40%) to $136.24. There were no major news catalysts, but investors likely viewed the recent declines as overdone, triggering a buying spree.
Alphabet and Meta Platforms gained over 3%, while Microsoft and Amazon rose more than 2.5%.
The only M7 stock that failed to rise by more than 2% was Apple, which saw a more modest uptick in comparison.
Quantum Computing Stocks Surge
Quantum computing stocks continued to soar, with Quantum Computing Inc. jumping $4.12 (55.45%) to $11.55 and IonQ rising by $9.88 (33.48%) to $39.39.
D-Wave and Rigetti also saw substantial gains, rising by over 20%.
D-Wave climbed $1.06 (22.41%) to $5.79, and Rigetti gained $1.99 (22.23%) to finish at $10.94.
International Oil Prices surged around 3%
International oil prices surged more than 2% on Wednesday, fueled by geopolitical and supply concerns.
A ceasefire agreement between Israel and Palestine, leading to the release of hostages starting on January 19, helped ease some geopolitical tensions in the Middle East. However, worries about supply disruptions quickly resurfaced, pushing oil prices higher.
U.S. sanctions on Russia’s shadow fleet, which is involved in the illegal export of Russian oil, raised expectations that China and India—two of Russia’s largest buyers—would shift their focus toward Middle Eastern crude, driving demand and increasing prices.
The closure of some U.S. pipelines further stoked concerns about oil supply. Colonial Pipeline shut down a section of its Georgia pipeline due to gasoline leaks, heightening fears of disruptions.
Brent Crude surged $2.11 (2.64%) to close at $82.03 per barrel for the March delivery contract, marking its highest level since August 12 of the previous year, a five-month peak.
West Texas Intermediate (WTI), the U.S. benchmark, rose by $2.54 (3.28%) to settle at $80.04 per barrel, breaking the $80 mark for the first time since August 12, 2023.
