Dow rises 500 points after rollercoaster week for stocks, earnings season kicks into high gear

Stocks rose sharply on Monday as investors weighed key earnings reports after a wild week of trading.

The Dow Jones industrial average rose 500 points, or 1.7%. The S&P 500 rose 2.5%, and the tech-heavy Nasdaq composite rose 3.2%.

The S&P 500 lost 1.6% last week, coming off its fourth negative week in five. Hotter than expected Inflation reading That triggered wild price swings in markets as investors readjusted their expectations for the Federal Reserve’s impending rate hikes.

Big swings have led the market to set new lows for the year, although some believe there are technical reasons for the market to see short-term relief.

“The 200-week moving average is serious support until firms fully acquiesce or a recession officially arrives, both of which could take months and lead to a technical rally in the short term,” said Morgan Stanley’s Mike Wilson. Note to customers.

Monday’s moves came as the British pound rose due to policy changes by the UK government. New UK Chancellor of the Exchequer Jeremy Hunt has announced that almost all planned tax cuts will be scrapped. The pound rose 1% to trade at $1.127 per US dollar.

Meanwhile, third-quarter earnings season is in full swing. Investors are watching to see if corporate America will make significant downward revisions to their outlook in the face of stubbornly high inflation and an economic slowdown.

Bank of America Monday posted better-than-expected results, sending the stock up nearly 5%. Bank of New York Mellon It posted results that beat analyst expectations and its shares rose more than 5%.

Several notable tech names are also reporting this week, including Netflix, Tesla And IBM. Other big companies on investors’ radar include Johnson & Johnson, United Airlines, AT&T, Verizon and Procter & Gamble.

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