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Wall Street rallies on back of big tech

May 25, 2022

Wall Street rallies on back of big tech
U.S. stocks ended higher on Monday as gains from banks and a rebound in market-leading tech shares supported a broad-based rally following Wall Street’s longest streak of weekly declines since the dotcom bust more than 20 years ago.

All three major U.S. stock indexes advanced between 1.6% and 2.0%, with the heftiest boost coming from rebounding megacap tech stocks Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O).

Interest rate-sensitive banks (.SPXBK) jumped 5.1% after the largest U.S. lender, JPMorgan Chase & Co (JPM.N) raised its current year interest income outlook. JPMorgan Chase’s stock surged 6.2%.

“It feels like a relief rally more than a fundamental change in investor sentiments,” said Oliver Pursche, senior vice president at Wealthspire Advisors, in New York. “Investors as a whole feel like there’s another shoe to drop and they’re probably right in the short term.”

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.

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