By Chuck Mikolajczak
NEW YORK (Reuters) – On Monday the U.K. U.S. stocks rose sharply for the week after the economic plan reversed course, while Bank of America was the latest financial institution to come out on top. Corporate earnings season.
The UK government appointed Jeremy Hunt as Chancellor of the Exchequer, and he immediately replaced British Prime Minister Liz Truss’s fiscal policies, which have rattled markets in recent weeks.
Bank of America shares rose 6.06% after the bank’s balance sheet showed its net interest income was boosted by interest rate rises in the quarter, although the company raised its loan loss reserves by 378 million euros.
Overall, higher borrowing costs lifted interest income for banks in the third quarter, giving investors hope that the current earnings season will beat expectations. According to Refinitiv data, revenue growth is forecast at 3% for the quarter, up from 4.5% at the start of the month and 11.1% on July 1.
The Dow Jones Industrial Average rose 1.86% to 30,185.82 points; The S&P 500 gained 2.65% to 3,677.95 points and the Nasdaq Composite rose 3.43% to 10,675.80 points.
The S&P 500 Bank Index rose 3.48%, while each of the 11 major S&P 500 sectors advanced.
Key mega-cap growth stocks such as Apple, Meta Platforms, Amazon.com and Tesla gained, helping the S&P 500 index rise 3.42%, its biggest daily percentage gain since July 27.
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