Dow Surges as Banks Pass Stress Test - InvestingChannel

Dow Surges as Banks Pass Stress Test

The Dow Jones Industrial Average rose on Thursday as big bank names gained after passing the Federal Reserve’s annual stress test, and a revised upward GDP print alleviated some recession fears on Wall Street.

The 30-stock index shot higher 269.76 points to conclude Thursday at 34,122.42, lifted by major bank names.

The S&P 500 gained 19.58 points to 4,396.44.

The NASDAQ index dipped 0.42 points to 13,591.33.

JPMorgan Chase, Goldman Sachs and Wells Fargo each rose more than 3% a day after the central bank said all 23 institutions included in its annual stress test are well capitalized to weather a severe recession scenario. Other financial stocks that took a hit during this year’s banking crisis also gained, including Charles Schwab, Western Alliance and Zions Bancorporation

A bout of positive economic data signaled economic resilience despite looming recession fears. That included a large upward revision in first-quarter GDP and drop in weekly jobless claims to the lowest level since May.

Just two trading days remain in what’s been a banner first half. The S&P 500 is up 14.5% this year and on pace for its best monthly performance since January. The tech-heavy NASDAQ has climbed nearly 30% — heading toward its best first half since 1983 — as rising optimism around artificial intelligence pushed up a slew of tech names and chipmakers. The blue-chip Dow is the relative underperformer, up just 2.9% this year.

Prices for the 10-year Treasury went earthward, propelling yields higher to 3.84% from Wednesday’s 3.71%. Treasury prices and yields move in opposite directions.

Oil prices recovered 26 cents to $69.82 U.S. a barrel.

Gold prices faltered six dollars to $1,916.20 U.S. an ounce.

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