The equity risk asset market showed a surge with positive corporate quarterly reports from financial companies spurring a recovery in sentiment.
Bank of America's (BoA) quarterly corporate report saw it rise 6.1% after its earnings per share beat estimates of $0.78 to $0.81 while revenue came in at $245 billion versus forecasts of $23.56 billion.
The same situation was experienced by Bank of New York Mellon with a jump of 5.1% when its profit per share recorded $1.21 compared to expectations of $1.1 and revenue rose from the forecast of $4.2 billion to $4.28 billion.
According to analyst Siddharth Singhai from investment firm Ironhold Capital, the banking sector is seen to be benefiting from the high interest rate environment in terms of new loan proceeds and growth in the number of depositors.
He added that high rates increased interest income for borrowers in the 3rd quarter, but market uncertainty made transactions difficult and banks set aside funds in the face of the economic slowdown.
Also providing insight was Emily Roland, chief investor strategist at John Hancock Investment Management, saying sensitive markets are now easily excited by any good news.
He explained that good financial income flanked by strong net interest margins and high rates gave impetus to the bank's Q3 earnings which in turn restored some sentiment.
The streak, the Dow Jones Industrial index rose 1.86% to 30,185.82 while the S&P 500 jumped 2.65% to 3,677.95 and the Nasdaq Composite added 3.43% to 10,675.80.
In Asia, Japan's Nikkei 225 rose 1.13%, Topix added 1.23%, South Korea's Kospi jumped 1.13%, Kosdaq jumped 2.16% and the S&P/ASX 200 reached 1.27% while the broad gauge MSCI Asia Pacific shares outside Japan reached 0.46%.
The Treasury yields summary saw the 2-year note down 5 basis points at 4.45% while the 10-year note remained at 4%.
