Better bank earnings and inflation readings sent bond and stock prices higher. Earnings and politics will likely have the most significant impact on markets this week.

Inflation is proving stickier than expected, which could cause Fed to hit pause button on more interest rate cuts.

The path of inflation proved bumpier than expected in December, with price growth picking up more than economists had forecast. The consumer price index climbed 2.9% year over year in December, according to data released Wednesday by the Bureau of Labor Statistics.

according to economists surveyed by FactSet, up from a 2.7% yearly increase in November. It would be the third straight rise, after inflation fell to a 3 1/2 year low of 2.4% in September.

With energy and food inflation markedly stronger in December, the overall reading for the consumer price index surged last month. But taking those categories out of the mix revealed a far more benign inflation reading.

Consumer inflation data came in slightly hotter than expected in December. Consumer prices were up 2.9% for the 12 months ended in December as compared to 2.7% in November, according to the latest Consumer Price Index data released Wednesday by the Bureau of Labor Statistics. On a monthly basis, prices rose by 0.4%.

The Labor Department releases its producer price index for December on Tuesday. The index measures inflation at the wholesale level, before businesses pass costs on to consumers. Economists predict that wholesale prices rose at a higher pace last month than in November.

Wholesale-level inflation heated up further to close out 2024, a sign that price pressures are building at a time when President-elect Donald Trump threatens to unleash a substantial array of tariffs.

according to a survey of forecasters by the data firm FactSet. Wholesale prices can offer an early look at where consumer inflation might be headed. Economists also watch it because some of its ...

Market-implied expectations for future inflation were little changed despite a milder-than-expected monthly core reading from December's CPI report on Wednesday — indicating that concerns about the outlook remain.

The dollar index was weaker and DHF Capital said persistent inflation could support the currency, with expectations of a hawkish Fed benefiting the dollar, adding that Wednesday’s. inflation data and comments from Fed officials should provide clarity on the 2025 monetary policy outlook.

U.S. stocks are rallying Wednesday after Wall Street and financial markets worldwide got a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from the biggest U.S.