U.S. stocks ripped higher after an encouraging update on U.S. inflation

ByThe Associated Press

U.S. stocks ripped higher after an encouraging update on U.S. inflation.

The S&P 500 jumped 1.8% for its best day in two months Wednesday. The Dow Jones Industrial Average climbed 1.7%, and the Nasdaq composite gained 2.5%.

Strong profit reports from the biggest U.S. banks also helped launch indexes. Wells Fargo, Citigroup and Goldman Sachs helped lead the way.

Treasury yields eased in the bond market on hopes that Wednesday’s inflation update could help convince the Federal Reserve to cut interest rates further later this year.

On Wednesday:

The S&P 500 rose 107 points, or 1.8%, to 5,949.91.

The Dow Jones Industrial Average rose 703.27 points, or 1.7%, to 43,221.55.

The Nasdaq composite rose 466.84 points, or 2.5%, to 19,511.23.

The Russell 2000 index of smaller companies rose 44.06 points, or 2%, to 2,263.29.

For the week:

The S&P 500 is up 122.87 points, or 2.1%.

The Dow is up 1,283.10 points, or 3.1%.

The Nasdaq is up 349.61 points, or 1.8%.

The Russell 2000 is up 74.06 points, or 3.4%.

For the year:

The S&P 500 is up 68.28 points, or 1.2%.

The Dow is up 677.33 points, or 1.6%.

The Nasdaq is up 200.44 points, or 1%.

The Russell 2000 is up 33.14 points, or 1.5%.