Major U.S. equities indexes notched strong gains in the midweek trading session after several banks released upbeat earnings reports. Data from the latest Consumer Price Index (CPI) report also helped underpin the rally, as indications of a cooldown in “core” inflation in December reinvigorated optimism that the Federal Reserve might implement additional interest-rate cuts in 2025.

The S&P 500 surged 1.8% on Wednesday. Outperformance among several financial sector components helped drive the Dow 1.7% higher, while the recalibrated rate-cut outlook buoyed the tech-heavy Nasdaq, which jumped 2.5%.

Tesla (TSLA) shares drove 8% higher, logging the strongest performance in the S&P 500, following reports of a strong first day of orders in China for the carmaker’s updated Model Y electric vehicle (EV). The refreshed sport utility vehicle (SUV) is expected to become available in U.S. and European markets within several months. In addition, Morgan Stanley analysts predicted that Tesla stock could reach as high as $800 per share in the coming year.

Bank of New York Mellon (BK) was among the financial firms that posted positive results, with gains in fee revenue and declines in non-interest expenses helping the bank top quarterly profit estimates. Although BNY’s CEO highlighted uncertainties related to the incoming presidential administration’s tariff proposals and the unclear prognosis for interest rates, he stressed the bank’s positive momentum heading into 2025. Bank of New York Mellon shares also gained 8%, leading bank stocks to rise higher on Wednesday.

While bank earnings dominated the financial headlines, another strong performance came from shares of Intuitive Surgical (ISRG), which added 7.7% after the medical technology firm released preliminary fourth-quarter results. Year-over-year sales growth of 25% exceeded consensus forecasts, and procedures performed using the company’s da Vinci surgical platform jumped 18% from a year ago. Increases in procedures help Intuitive drive higher sales of its single-use instruments and accessories, but the company expects growth in worldwide procedures to decelerate slightly in 2025.

Lululemon Athletica (LULU) shares fell 3.1%, losing the most of any S&P 500 constituent on Wednesday. The stock initially moved higher on Monday after the maker of yoga attire and other apparel lifted its quarterly sales and profit guidance, highlighting a strong performance during the holiday season. Since then, however, Lululemon shares have experienced volatility and have been unable to hold onto those gains.

Shares of generic drug manufacturer Viatris (VTRS) sank 2.8% on Wednesday. Last month, the U.S. Food and Drug Administration (FDA) restricted the import of 11 generic drugs produced at a Viatris plant in India, citing infractions related to manufacturing, handling, and quality control at the facility. Wednesday’s drop marked a continuation of a downtrend for the stock since the FDA announced the restrictions.

Hershey (HSY) shares slipped 2.3% on the day. Immediately after the markets closed last week, the chocolate maker announced that CEO Michelle Buck plans to depart from the company. The uncertainty surrounding the leadership team came shortly after a key Hershey shareholder rejected a buyout bid from snack food giant Mondelez (MDLZ) that would have created the world’s largest confectionary company.

CORRECTION: This article has been updated with the correct closing level for Bank of New York Mellon shares.