(For a Reuters live blog on U.S., UK and European stock

markets, click/ or type LIVE/ in a news window.)

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US consumer prices rise slightly above expectations in Dec

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JPMorgan ( JPM ), Wells Fargo ( WFC ), Goldman Sachs ( GS ) post higher Q4

profits

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BlackRock ( BLK ) assets hit record $11.6 trillion in Q4

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Futures up: Dow 1.57%, S&P 500 1.50%, Nasdaq 1.70%

(Updates before markets open)

By Johann M Cherian and Sukriti Gupta

Jan 15 (Reuters) -

Wall Street's main indexes were set to open higher on

Wednesday, as investors were relieved by data that showed core

inflation rose less than expected in December, and cheered a

strong batch of quarterly results from the country's biggest

banks.

At 8:54 a.m. ET, Dow E-minis were up 673

points, or 1.57%, S&P 500 E-minis were up 89 points, or

1.50% and Nasdaq 100 E-minis were up 356 points, or

1.70%.

Futures tracking the domestically focused small-cap

Russell 2000 index jumped nearly 3%.

A

Labor Department report

showed the consumer price index rose 2.9% in December, in

line with expectations by economists polled by Reuters. Still,

markets were focused on core CPI figures that advanced 3.2%,

lower than estimates of a 3.3% rise.

Traders now see the central bank delivering a total of

38.4 basis points worth of rate cuts this year, according to

data compiled by LSEG, compared with 31.3 bps before the

inflation data.

The yield on the benchmark Treasury note dipped

and was last at 4.7%.

"It was a relief to see core inflation come in slightly

lower than last month," said Brian Jacobsen, chief economist at

Annex Wealth Management.

"The Fed is going through a long arduous process of

rebuilding its credibility, so it will likely spend most of 2025

overreacting to upside surprises to inflation and underreacting

to downside surprises with its messaging."

Focus was also on big banks' earnings.

JPMorgan Chase & Co ( JPM ) rose 3.8% in premarket

trading after the lending giant posted a

record annual profit in the fourth quarter, while Wells

Fargo ( WFC ) added 5% after its fourth-quarter profit beat

Street expectations as a rebound in dealmaking activity

bolstered its investment banking business.

Goldman Sachs ( GS ) gained 3.8% after posting its

best quarterly profit

since the third quarter of 2021, while Citigroup ( C/PN )

swung to a

profit in the fourth quarter

, sending its shares up 5.6%.

"It is very optimistic to look into 2025 with the new

(Trump) administration, because there will be less regulatory

activity and even with higher interest rates, the net interest

margins of banks will probably improve," said Peter Andersen,

founder of Andersen Capital Management.

The S&P 500 Banks Index has gained about 3% in

January, outperforming Wall Street's main indexes, which have

logged declines so far this month.

In 2024, the banking index logged its biggest annual jump

since 2019 on expectations that U.S. President-elect Donald

Trump's policies such as tax cuts and loose regulations could

boost the financial sector.

Following a more than two-year bull rally, the S&P 500

is trading at valuations well above its historical

long-term average and investors await earnings to justify

further gains for equities.

The central bank is slated to unveil its beige book on

economic activity at 2:00 p.m. ET, which is expected to throw

further light on the economy's health.

Remarks from New York Fed President John Williams and

Chicago Fed President Austan Goolsbee, both Federal Open Market

Committee voting members, will also be parsed later in the day.

Among stocks, BlackRock ( BLK ) rose 5% after its assets hit

a record high of $11.6 trillion in the fourth quarter.