Dow Soars 557 Points, Energy, Materials Drive Broad Gains

U.S. equity markets turned in a broad rally on Tuesday as money poured into some of the more economically-sensitive sectors, such as energy and materials, despite evidence the banks are prepared for the harshest economic downturn since the Great Depression to worsen.

The Dow Jones Industrial Average gained 557 points, or 2.14 percent, while the S&P 500 rose 1.34 percent, wiping out earlier losses. The tech-heavy Nasdaq Composite climbed 0.94 percent.

Looking at stocks, Caterpillar and ExxonMobil were among the names that powered the Dow.

JPMorgan Chase & Co.’s second-quarter profit was cut in half from a year ago, but the lender reported better-than-expected earnings amid double-digit growth in stock and bond trading as COVID-19 whipped up market volatility.

Citigroup Inc. also outpaced estimates as strong trading results more than offset weakness in the consumer banking business. Still, both lenders set aside more money to cover loan defaults in the event the pandemic worsens.

Wells Fargo & Co. lost $2.4 billion and said it would cut its quarterly dividend to 10 cents per share, down from 51 cents. Read more at FOX Business