NEW YORK: Wall Street stocks jumped early Monday after British officials dropped more controversial tax cut measures, reassuring markets ahead of a heavy week of earnings.
In the latest U-turn by Britain’s Conservative Party, newly-installed finance chief Jeremy Hunt scrapped plans to axe the lowest rate of income tax, and curbed the government’s flagship energy price freeze.
The moves bolstered the British pound and pushed lower British bond yields after prior announcements by predecessor Kwasi Kwarteng tanked financial markets.
Wall Street drops as consumer data stokes inflation worry
About 25 minutes into trading, the Dow Jones Industrial Average was up 1.9 percent at 30,200.72.
The broad-based S&P 500 gained 2.6 percent to 3,675.52, while the tech-rich Nasdaq Composite Index advanced 3.2 percent to 10,647.88.
In the latest earnings announcement, Bank of America rose 4.2 percent after reporting better-than-expected results despite adding $378 million in reserves due to the risk defaults from of bad loans.
The results were similar to those by other banks last week, with executives describing US consumers as remaining healthy for now but facing more headwinds due to inflation.
This week’s earnings calendar includes reports from Netflix, Procter & Gamble and Tesla.
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