Dow pops 300 points after bank earnings, rate hike fears ease



US stocks climbed Monday after Goldman Sachs and Bank of America outpaced revenue forecasts and amid growing signals the central bank will not push even harder on interest rates at its upcoming meeting.

The Dow Jones industrial average rose 1 percent, or 300 points in morning trading, while the broader S&P 500 index jumped 0.8 percent and the tech-heavy Nasdaq added 1 percent. A relief Rally Friday lifted the blue-chip Dow more than 650 points, ending a five-day losing streak, but all three Indexes finished the week in the negative column.

Goldman Sachs reported better-than-expected Quarterly results ahead of the opening bell Monday. Although revenue fell 23 percent, to $11.86 billion, it was $1 billion more than Analyst estimates thanks to a 55 percent surge in fixed income revenue, including government and corporate bonds. Profit slumped 48 percent to $2.79 billion as a result of an industry-wide decline in investment banking activities. Goldman shares climbed 3.6 percent

Bank of America, meanwhile, reported a 5.6 percent jump in revenue, to $22.79 billion vs. forecasts of $22.67 billion. The bank benefited from rising interest rates, pushing net interest income up 22 percent. But profit declined 32 percent to $6.25 billion in the second quarter. Shares fell 1 percent.

Volatility could be elevated this week as Wall Street turns its attention to corporate earnings and attempts to reconcile an array of mixed economic signals. Results roll in from Charles Schwab and IBM later Monday, and from Netflix, Johnson & Johnson, Tesla, Twitter and a host of other companies in the coming days.

The global economic outlook has worried investors with signs of recession amid rising inflation, putting central banks under the spotlight. The European Central Bank is set to meet Thursday as the euro zone reels from high inflation, a brewing energy crisis and other fallouts from the Russian Invasion of Ukraine. The bank is expected to raise interest rates for the first time in 11 years.

Policymakers in the US signaled another interest rate increase by a 0.75 percentage point ahead of the Federal Reserve Board’s July 26-27 meetings.


What do you think?


Fauci says he will retire from government post by the end of Biden’s term

James Harden says he’ll take ‘whatever is left over’ from Philadelphia 76ers in next contract

Back to Top

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website. %privacy_policy%

Add to Collection

No Collections

Here you'll find all collections you've created before.