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Wall Street rallies on back of big tech, banks

Economy May 23, 2022 07:18PM ET
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© Reuters. FILE PHOTO: The New York Stock Exchange (NYSE) in New York City, where markets roiled after Russia continues to attack Ukraine, in New York, U.S., February 24, 2022. REUTERS/Caitlin Ochs

By Stephen Culp

NEW YORK (Reuters) - U.S. stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally following Wall Street's longest streak of weekly declines since the dotcom bust more than 20 years ago.

All three major U.S. stock indexes advanced between 1.6% and 2.0%, with the heftiest boost coming from rebounding megacap tech stocks Apple Inc (NASDAQ:AAPL) and Microsoft Corp (NASDAQ:MSFT).

Interest rate-sensitive banks jumped 5.1% after the largest U.S. lender, JPMorgan Chase & Co (NYSE:JPM) raised its current year interest income outlook.

JPMorgan Chase's stock surged 6.2%.

"It feels like a relief rally more than a fundamental change in investor sentiments," said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. "Investors as a whole feel like there's another shoe to drop and they're probably right in the short term."

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

Markets have been roiled in recent weeks by worries about persistently high inflation and aggressive attempts by the Federal Reserve to rein it in while the global economy copes with fallout from Russia's invasion of Ukraine.

"Today it would appear the market is less fearful over the inflation factor and the Fed being able to orchestrate a soft landing so to speak," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

But "the bias is still to the downside," Carlson added.

The Dow Jones Industrial Average rose 618.34 points, or 1.98%, to 31,880.24, the S&P 500 gained 72.39 points, or 1.86%, to 3,973.75 and the Nasdaq Composite added 180.66 points, or 1.59%, to 11,535.28.

The Fed will give investors a hint of its state of mind on Wednesday, when it releases minutes from its latest policy meeting. [FEDWATCH]

Economic indicators this week might lend further support to the notion that inflation peaked in March, and show whether high prices have hurt consumer spending power.

All 11 major sectors of the S&P 500 ended the session green, with financials enjoying the largest percentage gain, advancing 3.2%

First-quarter reporting season is nearly a wrap, with 474 of companies in the S&P 500 having posted results. Of those, 78% beat expectations, according to Refinitiv.

Looking ahead, current quarter pre-announcements are generally pessimistic, with 59 negative projections and 32 positive, compared with the year-ago quarter's 37 negative and 52 positive, per Refinitiv.

Shares of VMWare Inc surged 24.8% following reports over the weekend that chipmaker Broadcom (NASDAQ:AVGO) Inc was in talks to acquire the cloud service provider. Broadcom dropped 3.1%.

U.S.-listed shares of Chinese ride-hailing app Didi Global dropped 4.0% after shareholders voted in favor of de-listing from the New York Stock Exchange.

Advancing issues outnumbered declining ones on the NYSE by a 2.43-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and 31 new lows; the Nasdaq Composite recorded 27 new highs and 142 new lows.

Volume on U.S. exchanges was 10.93 billion shares, compared with the 13.36 billion average over the last 20 trading days.

Wall Street rallies on back of big tech, banks
 

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Comments (19)
Joao Abo-gaux
Joao Abo-gaux May 23, 2022 9:45PM ET
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I love those copy and past news … they dont have a clue
John Martin
John Martin May 23, 2022 6:24PM ET
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“ Wall street rallies” what are you ? Blind?
Robert Cox
Robert Cox May 23, 2022 6:20PM ET
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LOL! Aftermarket suggests tomorrow will erase today's gains and more.
Mitchel Pioneer
Mitchel Pioneer May 23, 2022 2:52PM ET
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Would you look at that, a 600 point tightrope walk.  The sellers have been locked in their cages, as another miracle "rally" unfolds.  Where's the "late trade" gang, and why aren't they taking profits?  Why do losses vanish "in late trade," but "rallies" hold?  Fraudulent, criminally manipulated JOKE.
Kamrooz Varzi
Kamrooz Varzi May 23, 2022 2:52PM ET
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same comment, rinse and repeat
Liam LL
Liam LL May 23, 2022 2:32PM ET
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The only question is when to buy put for most gain
Kerry Ditto
Kerry Ditto May 23, 2022 2:30PM ET
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Broken-hearted sideliners probably have to jump in regardless. Powerful FOMO force them.
Nick Johnson
Nick Johnson May 23, 2022 1:44PM ET
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The marked will be down by the end of the week.
Ziaush Shams
Ziaush Shams May 23, 2022 1:44PM ET
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is it going to up after this month?
Liam LL
Liam LL May 23, 2022 1:44PM ET
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Up? What if CPI goes up again. Bleeding time then
Sibusiso Nxumalo
Sibusiso Nxumalo May 23, 2022 1:44PM ET
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That's my anticipation too. Bearish...
Hoàng Tiến
Hoàng Tiến May 23, 2022 1:40PM ET
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Hello
Nick Johnson
Nick Johnson May 23, 2022 1:37PM ET
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It will be down again by the end of the week.  This marked is broken and the dementia patient in the White House is too dumb to do anything about it.
Rob Stone
Rob Stone May 23, 2022 1:12PM ET
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Total scam, there is a ton more money leaving all markets right now. There would be zero reason for markets to go up. Think on that
 
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