- Stocks surged Wednesday following a tame inflation report and positive bank earnings results.
- Israel and Hamas agreed to a ceasefire and hostage release deal that would end 15 months of conflict.
- Scott Bessent, Donald Trump's pick for Treasury secretary, is set to go before the Senate Finance Committee for his confirmation hearing.
Here are five key things investors need to know to start the trading day:
1. Gains, gains, gains
Buoyed by a cooler-than-expected CPI report and a slew of blowout bank earnings, all three major averages surged Wednesday for their best day since Nov. 6. The Dow Jones Industrial Average rose 703.27 points, or 1.65%, while the S&P 500 climbed 1.83% and the Nasdaq Composite gained 2.45%. S&P 500 futures were higher Thursday morning, as traders braced for another round of big bank earnings before the bell, with Bank of America and Morgan Stanley set to report. Follow live market updates.
2. Ceasefire
Israel and Hamas agreed to a ceasefire and hostage release deal on Wednesday that would end the 15-month war in the Gaza Strip. President Joe Biden said the deal could take effect as early as Sunday, and that it would be implemented in three phases — the first of which would include a full ceasefire and the withdrawal of Israeli troops from populated areas in Gaza. But Israel has delayed its cabinet vote to approve the deal, accusing Hamas of reneging and creating a "last-minute crisis," according to NBC News.
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3. Holiday highs
Target is the latest retailer to raise its fourth-quarter outlook, saying on Thursday that it expects comparable sales in the fiscal quarter to grow by about 1.5% after previously estimating that the metric would be approximately flat. The report is another sign that retailers had a better-than-expected holiday season, but investors so far haven't been impressed. Target did not lift its profit outlook, indicating that deals on Black Friday and Cyber Monday motivated shoppers.
3. Clock's ticking
Time is running out for TikTok. The social media company is hoping that the Supreme Court will step in and save it from a looming ban by ruling that the law violates TikTok users' right to free speech — something the court seems unprepared to do. ByteDance, TikTok's China-based parent, could also avoid a ban by selling TikTok. And while ByteDance hasn't indicated it's considering a sale, CNBC reported Wednesday that TikTok could go for as much as $40 billion to $50 billion, according to one estimate.
5. Senate showdown
Up next on Capitol Hill: Scott Bessent. President-elect Donald Trump's pick to lead the Treasury Department will face the Senate Finance Committee on Thursday, continuing a busy week of confirmation hearings for the soon-to-be-president's nominees. Trump's picks for secretaries of State, Energy and Transportation testified on Wednesday, along with the nominees for attorney general, CIA director and White House Office of Management and Budget director.
— CNBC's Hakyung Kim, Lisa Kailai Han, Sara Min, Natasha Turak, Christina Wilkie, Ruxandra Iordache, Melissa Repko, Jonathan Vanian, CJ Haddad, Dan Mangan, Kevin Breuninger, Spencer Kimball, Leslie Josephs, Ece Yildirim and NBC News contributed to this report.