The major indices are having some relief in today’s action. The earnings results from major banks came in better-than-expected and CPI data released this morning is raising prospects of rate cuts. The Nasdaq Composite is leading, up 1.95%, followed by the Russell 2000, up 1.6%.

The ten-year treasury yield (TNX) tumbled 11.7 basis points to 4.671%.

The only sector in the red is Consumer Staples (XLP). Financials (XLF) are in the lead, driven by gains in earnings reporters JPMorgan Chase (JPM), Goldman Sacks (GS), Wells Fargo (WFC), Citigroup (C), BlackRock (BLK) and Bank of New York Mellon (BK).

The four giant banks notched their second-most profitable year ever in 2024. JP Morgan Chase & Co. (JPM) topped $500 billion in annual profit, making it the first US bank in history to reach those profits. Citigroup (C ) saw three of its five main segments posting record annual revenue, while Goldman Sach (GS) equities traders segment saw a record revenue for the year. Even Wells Fargo (WFC) boosted its annual revenue from investment banking at a remarkable 62% y/y.

Core CPI (CPI excluding energy and food) came down to 0.2% from 0.3% m/m, while headline CPI rose to 0.4% m/m from 0.3% m/m. Food inflation eased slightly, the difference is primarily due to energy prices advancing the most, up 2.6% m/m, after the recent surge in oil prices and on the heels of the travel season. This is further highlighted by the fact that commodities without food and energy eased to 0.5% from 0.6% m/m.

Notably, services and shelter both stayed flat at a 0.3% m/m gain.