U.S. Stocks Rally on Bank of America Earnings Beat
BofA beats expectations in third quarter, leading market bounce after last week's volatility.

Wall Street's main indexes jumped on Monday as Bank of America led a rally among lenders after reporting a smaller-than-expected drop in profit, with its new loans benefiting from higher borrowing costs.
Bank of America Corp jumped 5.17% as the lender's net interest income surged in its third quarter, even though it added $378 million to its loan-loss reserves.
"Bank earnings have generally been good. Markets are loving Bank of America's earnings, but how you interpret that toward the rest of earnings season can be a little tricky, and how you interpret that vis-à-vis the health of the consumer," said Steve Sosnick, chief strategist at Interactive Brokers.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Bank of NY Mellon Corp also benefited from higher interest rates, sending its shares up 4.48%.
Overall, higher rates boosted interest incomes for lenders in the third quarter, but turbulent markets choked off dealmaking and banks set aside more funds to brace for an economic slowdown.
The S&P 500 banks index was up 3.43%. All the 11 S&P 500 sector indexes were higher with technology, communication services and consumer discretionary gaining between 3% and 4%.
Wall Street is deep in bear market territory, with economic indicators pointing to little signs of decades-high inflation cooling, but some analysts noted that stocks at such depressed levels could pave the way for short-term rallies.
"It's more just short-term technicals where you've got people overextended on the downside," said Jonathan Waite, fund manager at Frost Investment Advisors.
Some traders pointed to seasonality factors also in play during October, which has historically seen stocks climb heading into the end of the year.
Shares of Goldman Sachs, which will post results on Tuesday, were up 1.96%, following reports of a plan to combine its investment banking and trading businesses.
Major megacap growth stocks like Apple Inc, Meta Platforms Inc, Amazon.com and Tesla Inc added between 2.5% and 7.6% as the benchmark 10-year yield fell for the first time in three days.
Yields tracked moves in the UK bond market, after new Finance Minister Jeremy Hunt reversed most of Prime Minister Liz Truss's economic growth plan.
The S&P 500 Growth index gained 3.3%. Tesla Inc, Netflix and Johnson & Johnson are also expected to report results later in the week.
Analysts now expect profit for S&P 500 companies to have risen just 3% from a year ago, much lower than an 11.1% increase expected at the start of July, according to Refinitiv data.
At 12:26 p.m. ET, the Dow Jones Industrial Average was up 532.47 points, or 1.80%, at 30,167.30, the S&P 500 was up 93.95 points, or 2.62%, at 3,677.02, and the Nasdaq Composite was up 341.11 points, or 3.30%, at 10,662.50.
Advancing issues outnumbered decliners by a 7.45-to-1 ratio on the NYSE and by a 3.82-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and two new lows, while the Nasdaq recorded 58 new highs and 94 new lows.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Additional reporting by Susan Mathew; Editing by Saumyadeb Chakrabarty and Arun Koyyur)
For more daily investing coverage, subscribe to our Closing Bell e-newsletter.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
RMD Deadline April 1: Five Tax Strategies to Manage Your 2025 Income
Taxable Income The April 1, 2025, deadline for required minimum distributions (RMDs) is fast approaching for retirees who turned 73 in 2024.
By Kelley R. Taylor Published
-
Rising AI Demand Stokes Undersea Investments
The Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
By John Miley Published
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest Grows
Inflation worries are showing up in both hard and soft data.
By Karee Venema Published
-
Stock Market Today: It's Going to Stay Choppy for Stocks
Auto-focus can show us a lot about uncertainty on the ground and in the stock market.
By David Dittman Published
-
Stock Market Today: Auto Tariffs Send Stocks Lower
The main indexes snapped their win streaks after the White House confirmed President Trump will talk about auto tariffs after the close.
By Karee Venema Published
-
Stock Market Today: Stocks Seesaw After Big Market Rally
The latest consumer confidence data showed sentiment remains low.
By Karee Venema Published
-
Stock Market Today: Markets Celebrate Trump's Tariff Détente
Consumer discretionary stocks led 10 of the 11 S&P 500 sector groups well into the green.
By David Dittman Published
-
Stock Market Today: Stocks Swing Higher After Early Slump
Negative earnings reactions for Nike, FedEx and Micron kept pressure on the main indexes, though.
By Karee Venema Published
-
Stock Market Today: Stocks Struggle After Big Fed Gains
An unexpected rise in existing home sales couldn't save stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
By David Dittman Published