US stocks soared as traders cheered encouraging inflation data, while the 10-year Treasury plunged 13 basis points.

US stocks surged on Wednesday, fueled by a slowdown in core inflation and better-than-expected earnings from major banks. The Dow Jones Industrial Average rose by 804 points, or 1.9%, while the S&P 500 gained 2% and the Nasdaq Composite climbed 2.

U.S. stocks surged on Wednesday, with all three major indexes registering their biggest daily percentage gains in more than two months, as lower-than-expected December core inflation data and solid earnings from major U.