S&P 500 Rises Amid Strong Bank Earnings, Volatility Persists
The S&P 500 climbed 0.4% to 6,671.06 on Wednesday, shrugging off early losses as traders dismissed concerns over the U.S.-China trade dispute and the ongoing federal government shutdown. Bank of America and Morgan Stanley led the charge, with their stocks surging 4.4% and 4.7%, respectively, after reporting better-than-expected earnings. The Nasdaq Composite outperformed, gaining 0.7%, while the Dow Jones Industrial Average remained nearly flat.
Sam Stovall of CFRA Research noted, 'The banks have hit the ball out of the park,' highlighting their resilience amid rising rates and market turbulence. Expectations of another Federal Reserve rate cut later this month further bolstered investor confidence.
Despite the gains, volatility lingered. The Cboe Volatility Index (VIX) remained elevated, reflecting persistent unease over trade tensions and political uncertainty.
