(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* JPMorgan leads banks higher on upbeat interest income
* Broadcom shares fall on potential VMware buyout
* Indexes up: Dow 1.98%, S&P 1.73%, Nasdaq 1.26%
NEW YORK, May 23 (Reuters) - Wall Street rallied on Monday
as gains from banks and recently battered megacap market leaders
helped U.S. stocks rebound after their longest streak of weekly
declines since the dotcom bust.
All three major U.S. stock indexes were sharply higher, with
a rebound tech and tech-adjacent growth stocks, most notably
Apple Inc and Microsft Corp providing the
Interest rate-sensitive banks shot 5.9% higher
after the largest U.S. lender, JPMorgan Chase & Co
raised its current year interest income outlook.
JPMorgan Chase's stock was last up 7.2%.
"It looks like a reflex rally," said Chuck Carlson, chief
executive officer at Horizon Investment Services in Hammond,
Indiana. "Investors are following through of the bullish last
hour on Friday, taking advantage of the market bouncing off of
what seems to be a resistance level."
On Friday, the S&P 500 closed 18.7% below its record closing
high reached on Jan. 3. If the benchmark index closes 20% or
more below that record, it will confirm it has been in a bear
market since then.
Markets have been roiled in recent weeks by worries about
persistently high inflation and aggressive attempts by the
Federal Reserve to rein it in while the global economy copes
with fallout from Russia's invasion of Ukraine.
"Today it would appear the market is less fearful over the
inflation factor and the Fed being able to orchestrate a soft
landing so to speak," Carlson said, adding that "the (market's)
bias is still to the downside."
Market participants could get a hint of the Fed's state of
mind when the minutes from its most recent policy meeting are
release on Wednesday.
A spate of economic indicators this week might lend further
support to the notion that inflation peaked in March, and also
whether high prices have hurt consumer spending power.
A spate of dire warnings from retailers last week, including
Walmart Inc and Target Corp raised such
The Dow Jones Industrial Average rose 619.8 points,
or 1.98%, to 31,881.7, the S&P 500 gained 67.53 points,
or 1.73%, to 3,968.89 and the Nasdaq Composite added
143.35 points, or 1.26%, to 11,497.96.
Among the 11 major sectors of the S&P 500, financials
were enjoying the largest percentage gain.
First-quarter reporting season is nearly a wrap, with 474 of
the companies in the S&P 500 having posted results. Of those,
78% beat expectations, according to Refinitiv.
Looking ahead, current quarter pre-announcements are
generally pessimistic, with 59 negative projections and 32
positive, compared with the year-ago quarter's 37 negative and
52 positive, per Refinitiv.
Shares of VMWare Inc surged 20.2% following reports
over the weekend that chipmaker Broadcom Inc was in
talks to acquire the cloud service provider. Broadcom dropped
Pfizer Inc gained 1.1% after the drugmaker and its
peer BioNTech SE announced its COVID-19 vaccine was
effective in children under the age of 5.
Advancing issues outnumbered declining ones on the NYSE by a
2.58-to-1 ratio; on Nasdaq, a 1.47-to-1 ratio favored advancers.
The S&P 500 posted 1 new 52-week highs and 31 new lows; the
Nasdaq Composite recorded 24 new highs and 128 new lows.
(Reporting by Stephen Culp; additional reporting by Devik Jain
and Anisha Sircar in Bengaluru; Editing by David Gregorio)