S&P 500 Rockets Alongside Easing December CPI Inflation Data

The S&P 500 (SPX) rocketed 1.6% higher today alongside positive economic data and a slew of positive earnings reports. That includes the December Consumer Price Index (CPI) showing inflation easing. It was below expectations, spurring a stock market rally on Wednesday.

That’s great news for investors hoping for 2025 interest rate cuts. The Federal Reserve has been hesitant to cut rates due to increased inflation. This latest data may sway the central banks’s stance on rate cuts this year. On the flipside, there are still concerns that President-elect Donald Trump’s economic plans will increase inflation in 2025.

Adding to this are earnings reports from financial services companies coming out today. Many of these, such as Goldman Sachs (GS), Bank of New York Mellon (BK), and BlackRock (BLK) are rising today after beating earnings per share and revenue estimates for Q4 2024. This positive movement helps lift stocks higher.

Which Stocks Are Helping the SPX Index Today?

Turning to the TipRanks SPX heatmap tool, investors can see which stocks boosted the index higher today. The heatmap was largely green on Wednesday with the financial sector turning in some of the biggest gains. Other stocks up include those in the technology sector, the communication services sector, and the consumer cyclical sector.

How to Invest in the S&P 500

Investors can’t hold a direct stake in the S&P 500 as it’s only an index. However, they can buy shares listed on the index. The financial and tech sectors are performing well today and are expected to throughout 2025, making them strong investment candidates.

Another option is buying shares of an exchange-traded fund (ETF) that tracks the S&P 500. That includes those betting on and against the SPX. One popular option is SPDR S&P 500 ETF Trust (SPY) but there are plenty of others worth considering.

See more S&P 500 ETFs