Retail sales rose 0.4% in December. Economists had expected a 0.6% rise in spending, according to Bloomberg data. Meanwhile, retail sales in November were revised up to 0.8% from a prior reading that showed a 0.7% increase in the month, according to Census Bureau data.

US stocks jumped at the open after consumer price data showed inflation continues to slow. Strong bank earnings also helped lift sentiment.

The S&P 500 finished with a gain of 9.18 points, or 0.16%, to close at 5,836.22, after falling 0.92% at its session low. That marked its biggest intraday comeback since Sept. 11, when it was down 1.61% but finished the day with a gain of 1.