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.

European stocks and U.S. futures rose on Tuesday as a sell-off in bond markets moderated, although investors remained cautious ahead of U.S. inflation data on Wednesday and the start of U.S. President-elect Donald Trump's second term in office next week.

Asian stocks were mixed Wednesday followed Wall Street’s mostly positive performance ahead of key U.S. inflation data that could influence the pace of market-boosting rate cuts by the Federal Reserve.