Wall Street closes in green after positive quarterly results from BofA

US stocks started the week with a rally after Britain changed course on its economic plan, while Bank of America it was the latest finance company to post strong quarterly results, adding to optimism about corporate earnings season.

The S&P 500 gained 94.88 points, or 2.65%, to 3,677.95 points; Meanwhile he Nasdaq Composite added 354.41 points, or 3.43%, to 10,675.8 units. The Dow Jones Industrial Average it gained 550.99 points, or 1.86%, to 30,185.82 points.

Britain appointed Jeremy Hunt finance minister, and immediately rolled back many of the prime minister’s fiscal measures Liz Truss that had baffled the markets in recent weeks.

The actions of Bank of America Corp rose as the bank’s net interest income was boosted by rising interest rates in the quarter, even though it added $378 million to its loan loss reserves to support a weakening economy.

Bank of NY Mellon Corp it also benefited from higher interest rates, and its shares rose.

Overall, higher rates boosted interest income for lenders in the third quarter, giving investors hope that the current earnings season could beat lower expectations.

“In a fragile market like this, any kind of good news on the sidelines can go a long way,” said Emily Roland, co-head of investment strategies at John Hancock Investment Management in Boston.

The index of banks S&P 500 rose more than 3%, while each of the 11 major S&P 500 sectors rose.

The actions of Goldman Sachswhich is to publish results on Tuesday, also moved forward following reports of a plan to combine its investment banking and trading businesses.

kg