Bank balance sheets are very positive in the United States and the price of oil is skyrocketing, which is boosting energy companies. In this context, stocks on Wall Street are rising sharply.
Wall Street’s main stock indices rise this Friday driven by the positive results reported by large US banks and that fueled optimism about the future and current situation of that country’s economy. In that context, the US Treasury yields decline after previous session’s rally.
And it is that JPMorgan Chase, Wells Fargo and Citigroup climb between 3% and 5% this Friday in the stock market after surpassing quarterly profit estimates. The good result responds to the increase in interest rates that the Federal Reserve (Fed) has been implementing. Asset manager BlackRock, meanwhile, was down 1.5% after recording a sharp drop in net inflows in the third quarter.
Given this dynamic, the S&P 500 bank index gains 3.2%, reaching a maximum of three weeks. The energy sector follows the trail of an increase of more than 3% in crude oil prices and leads the gains among the S&P 500 sectors, so it is on track to be a higher weekly performer.
Consequently, the Dow Jones Industrial Average rose 261.95 points (0.78%) to 33,893.09 units. The S&P 500 (global) gained 19.89 points (0.46%) to 4,369.50 units and the Nasdaq Composite added 8.70 points (0.06%) to 13,582.92 units.
Wall Street posted its first drop in five days on Thursday as yields rose after consumer inflation data and weak demand at the 30-year U.S. bond auction. However, Yields decline this Friday, leaving all three major US stock indexes on track to post weekly gains.
Analysts see end to banking crisis
“The market will breathe a sigh of relief as Citi’s strong numbers coincide with strong results from JPMorgan and Wells Fargo, suggesting that the worst of the banking crisis is over“said Stuart Cole, chief economist at Equiti Capital.
But he anticipates that next year may prove more difficult, as the Federal Reserve is expected to cut rates again and fears persist over whether the United States will avoid a period of negative growth.
options traders are bracing for larger-than-usual swings in the share prices of some US banks following earnings releases, despite signs of cooling volatility in broader markets, according to options data.
Philadelphia Federal Reserve President Patrick Harker said the central bank has likely ended rate hikes as price pressures show signs of easing.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
