US Stocks: Wall Street Bank Boost Back, Apple After Unrest

U.S. stock indices climbed on Monday as investors beat-down Bank and Apple shares after a turmoil last week that saw the benchmark S&P 500 come close to securing a deadly market milestone for economic growth and inflation concerns.

All 11 major S&P sectors have advanced, with financial and energy growth of 3.8% and 2.4%, respectively.

Banks have added 6.1% after falling 16.7% so far this year. Shares of JPMorgan Chase & Co jumped 7.7% as the largest U.S. lender in terms of assets lifted its 2022 net interest income outlook and confirmed its profit target.

“Banks are in a state of over-selling. They tend to be very financially sensitive and with the information so far, they actually hold on, ”said Jeff Schulz, an investment strategist at Clearbridge Investments.

“There is some optimism that over the next few quarters an additional value of negativity has been set for banks in terms of earnings prospects.”
Battered growth stocks Alphabet Inc, Apple Inc and Microsoft Corp rose between 2.4% and 2.8%, giving the S&P 500 and Nasdaq the biggest boost.
Major indicators on Wall Street deepened year-to-date losses last week as rising inflation from Walmart Inc and other retailers added concerns about its impact on consumer and economic growth.

The benchmark S&P 500 fell more than 20% from its January 3 record that closed at one point high on Friday, pushing it to the brink of a bear market confirmation. The index is now down 17.9% from its all-time close.
“It simply came to our notice then. Markets are probably looking for a bearish bottom here at a bear market rally, ”Schulz said.

The readings of the first-quarter U.S. GDP, the PCE price index and the second estimate of April sustainable product data will be this week, perhaps indicating how the world’s largest economy is doing in the face of decades of high inflation.

The Federal Reserve’s May meeting minutes, due on Wednesday, will be closely analyzed for signs of how aggressively the US Federal Reserve plans to raise interest rates. Money is setting the market price in June and July with 50-point point rate hikes by the Fed.

At 11:53 am ET, the Dow Jones Industrial Average rose 672.35 points, or 2.15%, to 31,934.25, and the S&P 500 rose 68.12 points, or 1.75%, to 3,969.48.
The Nasdaq Composite rose 134.50 points, or 1.18%, to 11,489.11, but still outperformed its peers in terms of weight gain.
Cloud service provider VMware Inc. rose 20.7% over the weekend, chipmaker Broadcom Inc. said in a statement. Broadcom is down 2.6%.

Didi Global added 1.3% to its U.S.-listed shares, while a majority of Chinese ride-hailing giant shareholders voted in favor of a plan to delist her from the New York Stock Exchange.

The number of progress issues for the 3.00-to-1 ratio on the NYSE and the 1.56-to-1 ratio on the Nasdaq exceeded the number of decliners.
The S&P index hit a new 52-week high and 31 new lows, while Nasdaq recorded 22 new highs and 110 new lows.

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