US stocks jumped on Thursday after Wells Fargo said it expects to report a record quarterly profit, providing a ray of hope for the struggling financial sector and adding fuel to the month-long rally.
Wells Fargo shares jumped more than 24 percent to $18.57 after the bank said it expects to post $3 billion in net income for the first quarter, topping analysts expectations. "This is another step in that they are about to report earnings that are not a disaster and are creeping into the black," said Bruce Zaro, chief technical strategist at Delta Global Advisors in Boston.
In addition, a source familiar with talks told Reuters US officials will not look to close any banks based on the results of "stress tests" being conducted to determine how the largest US banks would fare under more adverse economic conditions.
The Dow Jones industrial average gained 219.90 points, or 2.81 percent, to 8,057.01. The Standard & Poors 500 Index rose 26.26 points, or 3.18 percent, to 851.42. The Nasdaq Composite Index jumped 55.77 points, or 3.51 percent, to 1,646.43.
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