The financial stocks created a positive momentum by staggering market rally on Monday after bullish news from the nation’s largest lender. However, the interest rates still poses a risk for the stocks, and experts aren’t on a point of relief just yet. Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co stated.
The Dow Jones Industrial Average had soared 633 points, which is 2%, to 31,896 by the end of the day. While the S&P had gone up by 1.85% and the tech-heavy Nasdaq, 1.4%. Hence, setting the market up for its first daily increase in a week.
Despite the lingering dubiety, JPMorgan’s renewed outlook has led to massive gains for a slew of bank stocks, with Citigroup, Bank of America and Wells Fargo rising by 7%, 6% and 5.5%, respectively.
Stock market will likely find a bottom when the Fed signals a pause in its tightening campaign, inflation begins to abate, says analyst Tom Essaye of The Sevens Report.