Shares of Morgan Stanley hit a record high and were last up 7.2%, while Bank of America rose 4.4% after major lenders beat Wall Street estimates for third-quarter earnings based on dealmaking strength. Bank of America also raised the lower end of its interest income forecast.
“We’ve seen really good results from the big banks reporting so far, some impressive numbers, so I would expect to see positive sentiment and a good market reaction,” said Kristina Hooper, chief market strategist at Man Group.
Meanwhile, US Treasury Secretary Scott Bessent said at a CNBC event that the wave of investment in the US economy is sustainable and is just getting started.
A day earlier, lenders including Goldman Sachs and JPMorgan Chase reported solid performance in investment banking and predicted the business would continue to thrive.
The results indicate early strength in third-quarter earnings season in corporate America, providing a bellwether for the economy while government reports are on hold. US chip makers rose after ASML reported third-quarter orders and operating profit above market expectations. US-listed shares of ASML rose 3%. Micron Technology rose 1.4% and Advanced Micro Devices rose 6.5%. Intel and Nvidia added 1.5% and 1.2% respectively.
At 10:03 a.m. ET, the Dow Jones Industrial Average rose 358.55 points, or 0.77%, to 46,627.33, the S&P 500 gained 65.39 points, or 0.98%, to 6,709.70 and the Nasdaq Composite gained 261.64 points, or 1.16%, to 22,783.34.
The S&P 500’s technology and financial sectors led the broader gains, rising 1.3% and 0.8%, respectively.
The S&P 500 banking index rose 2.1% that day.
A number of Fed officials will speak later in the day. The Beige Book on the Fed’s economic situation, which will be released at 2 p.m. Dutch time, is also on the radar.
Fed Governor Stephen Miran said at a CNBC event that “two more cuts this year sound realistic,” noting that the labor market has clearly weakened.
Fed Chairman Jerome Powell left the door open to rate cuts on Tuesday, saying the US labor market is still stuck in a slump with few hiring and few layoffs.
Bessent also told CNBC that he plans to nominate three or four major Fed candidates to President Donald Trump for him to interview sometime after Thanksgiving.
Meanwhile, Trump said Tuesday that Washington is considering cutting some trade ties with China, including over cooking oil. That came after the two countries started imposing port fees, raising concerns about the trade war between China and the US.
Bessent said officials from both countries are working to organize a meeting.
Among other stocks, Abbott fell 2.7% due to disappointing quarterly revenue.
Progressive Corp lost 7.8% after the insurer reported third-quarter results.
Bunge rose 10.9% despite the company lowering its 2025 profit forecast after its merger with Viterra.
On the Nasdaq, 3,097 stocks rose and 1,016 fell as advancing issues outnumbered declining stocks by a 3.05-to-1 ratio.
as a reliable and trusted news sourceThe S&P 500 posted 29 new 52-week highs and two new lows, while the Nasdaq Composite posted 103 new highs and 15 new lows.
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