Financial Shares Surge as Inflation Sets Stage for Rate Rise -- Financials Roundup

Shares of banks and other financial institutions surged as another uncomfortably high inflation reading for September is likely to keep the Federal Reserve on track to increase interest rates by 0.75 percentage point at its meeting next month.

JPMorgan, Morgan Stanley and other big banks are set to report third-quarter results on Friday. The six largest U.S. banks are slated to report $27.6 billion in combined profit in the third quarter, a 26% decline from the same period last year.

Meanwhile, a souring market weighed on investing giant BlackRock in the third quarter, pushing profit down 16%.

Apple is forging a partnership with Goldman Sachs to offer high-yield savings accounts to users of Apple's credit card, the Apple Card, marking the tech company's latest move into the financial-services space.

Tether, the issuer of the largest stablecoin in the world, said that it has cut its commercial paper holdings to zero and replaced them with U.S. Treasury bills.

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(END) Dow Jones Newswires

10-13-22 1701ET