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Drew Angerer/Getty Images US stocks ripped higher on Wednesday after strong bank earnings and encouraging inflation data.

The stock market may be moving toward an "opportunity zone," and strategists see a healthy correction coming that could set the stage for more gains.

The latest inflation report slashed the risk that the Fed could go back to hiking interest rates this year, Wall Street strategists say.

More monster gains for the S&P 500, global internet failure, and $600B worth of power outages are events investors should consider, BofA said.

Stocks and bonds staged a turnaround this week as investors cheered a flurry of positive headlines that bolstered the case for rate cuts in 2025.

In his testimony, Bessent said he believed Trump's presidency would help "unleash a new economic golden age," which could include more jobs and increased wealth for Americans. He also suggested the US was "barreling towards an economic crisis" at the end of the year.

Americans are deep in credit card debt, with card balances hitting a record $1.17 trillion in the third quarter of 2024.

Fed rate cuts and Trump's tariff plan are among the things investors may need to adjust their thinking on, Deutsche Bank said.

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