US stock indexes beat expectations of gains on Monday, with Goldman Sachs adding to last week’s positive momentum amid an easing of bets on a super-sized interest rate hike by the Federal Reserve.
The Dow rose more than 200 points in early trade, up from Friday, when US economic data showed stronger-than-expected retail sales, buoyant consumer sentiment and lower inflation expectations.
Goldman Sachs Group Inc gained 4.2% as it reported a lower-than-expected 48% fall in second-quarter profits, fueled by strength in its fixed-income business. The investment banking giant’s results follow upbeat quarterly results from Citigroup Inc. on Friday.
The S&P 500 bank index added 0.9% on Monday, with Bank of America Corp extending an earlier decline of 1.3%, even as second-quarter profit fell by nearly 34%.
“You have a feeling that maybe all the bad news is over and investors want to see if that would be a reasonable entry point,” said Rick Meckler, partner at Cherry Lane Investments.
At 10:07 a.m. ET the Dow Jones Industrial Average was up 210.11 points, or 0.67%, at 31,498.37, the S&P 500 was up 30.14 points, or 0.78%, at 3,893.30, and the Nasdaq Composite was up 147.30 points, or 1.29%. , at 11,599.72.
The S&P 500 technology sector index rose 1%, with chipmaker Nvidia Corp up 5%.
Several US semiconductor firms are considering whether to oppose a package of chip industry subsidies if the final language of the law, awaiting a vote on Tuesday in the Senate, would disproportionately disprove manufacturers like Intel Corp. benefits, sources familiar with the matter told Reuters.
Among other stocks, The Boeing Company jumped 3.3% when Delta Air Lines Inc. said it would buy 100 MAX 10 jets worth about $13.5 billion at list prices and has options to buy another 30 at the Farnborough Air Show. Shares of Delta jumped 4.7%.
With earnings season approaching, analysts now expect the S&P 500’s second-quarter profit to rise 5.6% year-over-year, down from the 6.8% estimate at the start of the quarter, according to Refinitiv data.
The S&P 500 energy sector index jumped 3.1% as crude oil prices rose more than $4.
The number of advance issues declined to a 4.10-to-1 ratio on the NYSE and a 3.33-to-1 ratio on the Nasdaq.
The S&P index recorded a new 52-week high and 30 new lows, while the Nasdaq recorded 23 new highs and 23 new lows.
This story has been published without modification in text from a wire agency feed.
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