NEW YORK - Wall Street stocks scored solid gains on Monday, boosted by better-than-expected bank results that lifted hopes for earnings season.
Bank of America became the latest US financial heavyweight to top estimates following on the heels of JPMorgan Chase and other banks that reported solid results on Friday.
Analysts have been hopeful that a successful third-quarter earnings season could reset a market that has tumbled in 2022 due to worries over inflation and Federal Reserve interest rate hikes.
“I think people after the last couple of bank earnings are relatively optimistic about earnings reports,” said Maris Ogg of Tower Bridge Advisers, who thinks those hopes may be premature.
“But I think that we will know in the next couple of weeks if the market has bottomed or not,” said Ogg, who notes that the market’s pullback in 2022 means “there are some pretty attractive valuations out there.”
The Dow Jones Industrial Average gained 1.9 per cent to 30,185.82.
The broad-based S&P 500 jumped 2.7 per cent to 3,677.95, while the tech-rich Nasdaq Composite Index advanced 3.4 per cent to 10,675.80.
Among individual companies, Bank of America surged 6.1 per cent as its chief executive, Brian Moynihan, said US consumers continue to demonstrate resiliency despite inflation.
But much like rival financial giants, Bank of America added US$378 million (S$530 million) in reserves in case of bad loans due to a potential recession.
This week’s earnings calendar includes reports from Netflix, Procter & Gamble and Tesla. AFP
