Wall Street gains following BofA results and the UK's reversal

After Britain changed its mind about an economic plan, U.S. stocks started the trading week on a positive note. Bank of America was the latest financial company to report strong quarterly results, which increased excitement about the next corporate earnings season.

The rise in interest rates helped fellow financial institution Bank of NY Mellon Corp., whose shares increased 5.08%.

The co-chief investment strategist of John Hancock Investment Management in Boston, Emily Roland, said, "In a fragile market like this, any form of good news in the margin may go a long way.

"There is a better sense of what is going on in the UK, financials earnings are being supported by a number of factors, better net interest margins are one key element, higher rates are going to be good for the banks, so Q3 earnings are maybe looking a little less bad than feared, I would put it, maybe not necessarily better than feared," the author said.

Each of the 11 major S&P 500 sectors had gains, but the S&P 500 banks index (.SPXBK) increased by 3.48%.

The Nasdaq Composite increased 354.41 points, or 3.43%, to 10,675.80, while the S&P 500 jumped 94.88 points, or 2.65%, to 3,677.95. The Dow Jones Industrial Average increased 550.99 points, or 1.86%, to 30,185.82.

U.S. stocks are still in a bear market despite slogging through the notoriously challenging month of September. Better market values coming into what is often a stronger season for equities, according to analysts, were also contributing to Monday's gain. However, abrupt increases in interest rates by the Federal Reserve could prove problematic.

"Right now the Fed owns the market; Fed policy is the major driver, and they are undertaking the most aggressive tightening in the shortest amount of time that we have seen in our lifetime," said Roland. It's crucial to keep in mind, though, that Fed policy has a lag.

Data on manufacturing in the New York region were weaker than anticipated, which increased speculation that the Fed would soon change course.

Apple Inc., Meta Platforms Inc., Amazon.com, and Tesla Inc. all experienced strong gains, assisting in the S&P 500 Growth index's (.IGX) 3.42% gain, which was the largest daily percentage increase since July 27.

Later in the week, results from a number of firms are anticipated, including Tesla Inc., Netflix, and Johnson & Johnson.

10.65 billion shares were traded on U.S. exchanges, which is lower than the 11.52 billion average for the entire session for the previous 20 trading days.

On the New York Stock Exchange, advancers outweighed decliners by a ratio of 4.79 to 1, while the Nasdaq favoured advancers by a ratio of 2.98 to 1.

The Nasdaq Composite registered 83 new highs and 146 new lows while the S&P 500 had no new 52-week highs and two new lows.