Stock market news today: Banks set positive tone for 2nd-quarter earnings

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US stocks rise after banks set positive tone for 2nd-quarter earnings

Results from JPMorgan and Wells Fargo beat analyst estimates, while Citigroup posted mixed results that were weighed down by a disappointment in its investment banking division. Results from all the large-cap banks, as well as asset management giant, showed no signs that the economy is on the verge of entering a recession, as some economists expect.

Investors expect second-quarter earnings results to represent a trough for corporate profits before they rebound as inflation continues to fall and the Federal Reserve nears its end of interest rate hikes. The Fed is expected to hike interest rates one more time at its policy meeting later this month.

 

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