Traders work on the floor of the NYSE at the opening bell at the New York Stock Exchange on Wall Street in New York City on May 9. The Dow Jones Industrial Average gained 550 points on Monday as markets rallied. File Photo by John Angelillo/UPI | License Photo
Oct. 17 (UPI) -- U.S. markets rose sharply Monday, boosted by stronger-than-expected third-quarter earnings.
The Dow Jones Industrial average jumped 550.99 points, or 1.86%, to close at 30,185.82. The S&P 500 climbed 94.88 points, or 2.65%, to 3,677.95, and the Nasdaq Composite gained 354.41 points, or 3.43%, to 10,675.80.
Volatile trading has led to sharp moves in both directions in recent weeks.
"The 200-week moving average is a serious floor of support until companies fully confess or a recession officially arrives, both of which could take several more months and lead to a technical rally in the short term," Mike Wilson of Morgan Stanley said, according to CNBC.
Investors reacted favorably to news in Britain that Chancellor Jeremy Hunt would kill most of Prime Minister Liz Truss' tax cuts, and Monday's market rally was boosted by strong earnings reports.
Bank of America beat analysts expectations, reporting third-quarter earnings of $7.1 billion, or 81 cents a share on $24.62 billion in revenue.
Share of Bank of America rose 6.06% Monday, closing at $33.62.
"We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%," CEO Brian Moynihan said in a news release.
Bank of New York Mellon also had a strong earnings report Monday, following similar news from Citigroup, JPMorgan Chase and Wells Fargo, which reported stronger-than-expected earnings last week despite being down from a year ago.
Citigroup Inc. CEO Jane Fraser said the U.S. economy remains resilient and consumers should be able to withstand an expected mild recession, Yahoo! Finance reported.
"While we are seeing signs of economic slowing, consumers and corporates remain healthy, as our very low net credit losses demonstrate," Fraser said.
Netflix was among Monday's strong performers, rising 6.57% to $245.10, ahead of competitors Amazon.com Inc., which rose 6.45% to $113.79 and Walt Disney Co., which was up 3.05% to $97.33.
Oil prices were largely stable, with West Texas International falling 0.06% to $85.56 and Brent Crude rising 0.15% to $91.77.
Treasury yields also remained steady. The 2-Year Treasury was down 0.046 percentage point to 4.452% while the 10-year Treasury added 0.003 to 4.013%.