Shares of major U.S. banks surged after Bank of America (BAC) and Citigroup (C) became the latest lenders to report better-than-expected first-quarter earnings on the back of a stock-trading boom.
Bank of America shares were up 4.5% Tuesday afternoon, while those of Citi were 3.8% higher. Both banks were among the top gainers on the S&P 500. The benchmark index’s financial services sector was its best performer in recent trading.
The KBW Nasdaq Bank Index (BKX) was more than 2% higher in recent trading. Morgan Stanley (MS) and Goldman Sachs (GS) were both up around 2%. Shares of JPMorgan Chase (JPM), one of the world’s largest banks, were little changed.
Comments from Bank of America CEO Brian Moynihan on the company’s earnings call noting that the U.S. economy is on a solid footing despite the turmoil around President Donald Trump’s tariffs also lifted investor sentiment. Concerns of a looming recession and a spike in inflation have mounted in recent weeks since Trump began launching tariffs on U.S. trading partners.
Citigroup CEO Jane Fraser said Tuesday that she believed the U.S. will remain the “world’s leading economy.” She also said she was bullish about the prospects for the U.S. dollar, which is on track to have its worst two-month stretch since 2002.
“When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the U.S. will still be the world’s leading economy, and the dollar will remain the reserve currency,” Fraser said.
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