Key Takeaways

Major U.S. indexes surged at midday Wednesday after several big banks reported strong quarterly results and a key measure of inflation came in softer than anticipated. The Nasdaq was over 2% higher, while the Dow added 1.5% and the S&P 500 was up 1.6%.

Bank of New York Mellon ( BK ) shares jumped after the financial company reported better-than-expected results on record revenue and lower costs.

BlackRock ( BLK ) set a record for assets under management and also had quarterly results that exceeded forecasts, sending its shares higher.

Goldman Sachs ( GS ) shares advanced as the bank blew away earnings and revenue estimates on strong trading revenue.

Shares of Edison International ( EIX ) and PG&E ( PCG ) were higher on indications that power lines may not have been the cause of the devastating wildfires in California .

Shares of Builders FirstSource ( BLDR ) and others in the homebuilding industry took off on optimism that the latest inflation report will make the Federal Reserve more likely to cut borrowing costs.

Tesla ( TSLA ) shares advanced as Barclays analysts raised their price target for the stock, pointing to the electric vehicle maker’s work on self-driving cars and artificial intelligence.

Oil and gold futures climbed. The yield on the 10-year Treasury note sank. The U.S. dollar was up on the euro, but lost ground to the pound and yen. Prices for most major cryptocurrencies were higher.

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