U.S. stocks were surging on Wednesday morning as Treasury yields fell after core inflation data came in below expectations, boosting bets that the Federal Reserve will still be able to cut interest rates this year.

Wall Street stocks surged Wednesday as traders digested US inflation data and strong earnings reports by major banks.

U.S. stocks are rallying after financial markets worldwide got a shot of adrenaline from an encouraging update on U.S. inflation. Strong profit reports from the biggest U.S. banks are also helping send indexes higher.