US stocks rose Thursday after better-than-expected earnings reports from Bank of America and other big companies.
The Dow Jones Industrial Average rose about 470 points, or 1.4%. The S&P 500 was up 1.4% and the Nasdaq Composite was up 1.4%.
Third quarter reporting season continued Thursday, with several major banks and Dow members reporting their financial results to the bell.
Eight members of the S&P 500 reported earnings this morning, and all eight exceeded Wall Street's earnings-per-share expectations.
"So far, despite rising labor costs, the vast majority of large US corporations have achieved higher profitability thanks to robust revenue growth. We expect the same will continue in the third quarter," said Mark Haefele, chief investment officer, UBS Global Wealth Management said in a note on Thursday.
Bank of America, Morgan Stanley and Citigroup stocks rose after beating earnings expectations. Wells Fargo traded lower despite a profit blow.
Dow constituent UnitedHealth also won after companies' quarterly results beat estimates and topped the list on blue-chip averages.
Walgreens Boots Alliance stocks rose after the drugstore chain beat earnings expectations. The company announced that it will become the majority owner of VillageMD with an investment of $ 5.2 billion.
Meanwhile, falling interest rates drove technology stocks. The benchmark yield on 10-year US Treasuries fell, which has usually benefited high-growth names as lower interest rates add to the value of companies' future earnings.
Big tech stocks Microsoft, Apple and Facebook each gained at least 1%, while Google parent Alphabet gained more than 2% and supported the market.
Caterpillar was among Dow's biggest winners after Cowen initiated coverage of the equipment maker with an outperformance rating. UPS rose to be one of the top performers on the S&P 500 following an upgrade from Stifel, which cited impending vacation demand.
A lower than expected number of weekly jobless claims contributed to positive market sentiment. Initial unemployment insurance claims were 293,000 last week – the first time the number fell below 300,000 during the pandemic era.
"We're seeing new and welcome signs of improvement in the job market," said Bankrate's Mark Hamrick.
The producer price index in September was lower than expected, which also helped sentiment. Wholesale prices rose 0.5% from the previous month against the Dow Jones estimate of 0.6%.
– CNBC's Michael Bloom contributed to this report.