US stocks rallied Wednesday after an encouraging inflation report and blockbuster profits for some of America’s biggest banks. The Dow surged around 775 points, or 1.82%, in afternoon trading. The S&P 500 rose 1.

U.S. stocks ripped higher Wednesday following a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from Wells Fargo and other big U.S. banks also helped launch indexes to their best day in two months.

Wall Street banks JPMorgan Chase, Goldman Sachs and Citigroup notched up strong rises in profits at the end of last year, powered by a boom in trading and dealmaking. JPMorgan’s net earnings rose 50 per cent per cent to $14bn,