Wall Street rises on the back of big tech banks

NEW YORK (Reuters) – U.S. stocks closed higher on Monday as gains from banks and a rebound in market-leading technology shares supported a broad-based rally after the longest series of weekly declines on Wall Street since the dotcom crash in more than 20 years. since.

All three major US stock indexes advanced between 1.6% and 2.0%, with the strongest impetus coming from the rebound in shares of tech giant Apple Inc. (AAPL.O) and Microsoft Corporation (MSFT.O).

Interest rate sensitive banks (.SPXBK) Jumped 5.1% after the largest US lender, JPMorgan Chase & Co. (JPM.N) It raised its interest income forecast for the current year. Read more

And JPMorgan Chase shares rose 6.2 percent.

“It looks more like a recovery than a fundamental change in investor sentiment,” said Oliver Burch, senior vice president of Wealthsper Advisors in New York. “Investors as a whole feel there is another shoe to let go and may be right in the short term.”

On Friday, the S&P 500 closed 18.7% below its record closing high on January 3. If the benchmark index closes 20% or more below this record, it will confirm that it has been in a bear market since then.

Markets have been turbulent in recent weeks due to fears of persistently high inflation and aggressive attempts by the Federal Reserve to rein in it as the global economy deals with the fallout from Russia’s invasion of Ukraine.

“The market today appears to be less fearful of the inflation factor and the Fed’s ability to orchestrate a soft landing so to speak,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana.

“The bias remains in the negative direction,” Carlson added.

Dow Jones Industrial Average (.DJI) The Standard & Poor’s 500 Index rose 618.34 points, or 1.98%, to 31,880.24 points (.SPX) Gained 72.39 points, or 1.86%, to 3,973.75 points and the Nasdaq Composite (nineteenth) It added 180.66 points, or 1.59%, to 11,535.28 points.

The Federal Reserve will give investors a hint of its state of mind on Wednesday, when it releases the minutes of its latest policy meeting. FEDWATCH

Economic indicators this week may provide further support to the notion that inflation peaked in March, and show whether higher prices have hurt consumers’ purchasing power.

All 11 major sectors of the S&P 500 index ended the session in green, with financial data (.SPSY) It has the largest percentage gain, advancing 3.2%.

The first-quarter reporting season is coming to a close, with 474 companies in the S&P 500 publishing their results. Of those, 78% exceeded expectations, according to Refinitiv.

Looking ahead, advances for the current quarter are generally pessimistic, with 59 negative forecasts and 32 positive, compared to last year’s quarter 37 negative and 52 positive forecast per Refinitiv.

Shares in VMWare Inc (VMW.N) It rose 24.8% after reports over the weekend from chip maker Broadcom (AVGO.O) It was in talks to acquire a cloud service provider. Broadcom shares fell 3.1%. Read more

US-listed shares of Chinese car-delivery app Didi Global fell 4.0% after shareholders voted to delist from the New York Stock Exchange. Read more

Advance issues outnumbered declining issues on the New York Stock Exchange by 2.43 to 1; On the Nasdaq, the ratio was 1.44 to 1 in favor of advanced traders.

The S&P 500 hit a new 52-week high and 31 new low; The Nasdaq recorded 27 new highs and 142 new lows.

Volume on US stock exchanges reached 10.93 billion shares, compared to an average of 13.36 billion over the last 20 trading days.

Stephen Kolb reports. Additional reporting by Devik Jain and Anisha Sircar in Bengaluru; Editing by David Gregorio

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