U.S. stocks moved higher on Wednesday after a key inflation report showed a historic gain but largely matched expectations.
The Dow Jones Industrials rocketed 141.88 points to 36,393.90.
The S&P 500 gathered 42.78 advanced 31.07 points to 4,744.14
The NASDAQ Composite tacked on 141.13 points to 15,294.58.
Stocks tied to economic growth were some of the stronger performers in early trading, with Caterpillar rising 1% and Freeport-McMoRan jumping 5%. Software giant Microsoft added 2%.
Dish Network rose 3% following news that the company is again in merger talks with DirectTV, according to sources who spoke with the New York Post. On the downside, Biogen shares tumbled nearly 9% following news that Medicare will only cover the cost for the company's Alzheimer's drug Aduhelm for patients with early-stage symptoms who are enrolled in clinical trials.
Meanwhile, big banks will kick off the fourth-quarter earnings season on Friday. JPMorgan Chase, Citigroup and Wells Fargo are slated to release quarterly results before the bell.
The moves come after the December reading for the consumer price index, a gauge of prices across a broad spectrum of goods, showed a gain of 7% year over year. That is the biggest jump since 1982, but was in-line with expectations from economists surveyed by Dow Jones.
The monthly increase was slightly hotter than expected.
However, interest rates already moved sharply higher in the first week of 2022, sparking a selloff in tech stocks. That suggests the hot inflation report, and future actions by the Federal Reserve, may be at least partially priced in to the market.
Prices for 10-year Treasurys gained some ground, lowering yields to 1.73% from Tuesday's 1.75%. Treasury prices and yields move in opposite directions.
Oil prices picked up 91 cents to $82.13 U.S. a barrel.
Gold prices grew $5.30 to $1,823.80 U.S. an ounce.