Stock markets rebound after a week of injury

Stock markets rose on Monday, the latest in a series of wild fluctuations, after several major financial institutions reported earnings that beat expectations.

Large daily swings are becoming more and more common in the stock market this month. The Standard & Poor’s 500 Index closed with a gain of 2.65 percent, reversing its drop of more than 2 percent on Friday, which itself came after a rise of more than 2 percent on Thursday. All 11 sectors in the S&P 500, which include groups such as technology, energy and real estate, also rose. The benchmark index recorded six daily movements greater than 2 percent this month, compared to just two in September.

The S&P has been down more than 22 percent since the start of the year.

The big turnaround in the markets came on Monday after Bank of America, The second largest bank in the countryQuarterly earnings exceeded expectations. Also lifting sentiment was news from Britain that Prime Minister Liz Truss’ tax plan, which has rocked the markets, will be reversed.

Bank of America noted continued strength in consumer spending, echoing its earnings Other major banks At the end of last week. Its shares rose 6 percent. Charles Schwab and Bank of New York Mellon also reported better-than-expected earnings.

Investors are closely watching companies that reported earnings this quarter to gauge whether major companies are beginning to feel the effects of the economic downturn. This week, companies including American Airlines, Goldman Sachs and Procter & Gamble are set to open their books, providing updates and forecasts for investors worried about the course of the economy.

Kristi Achollian, chief strategist at iShares at BlackRock, said the big volatility in stocks lately hasn’t always been about changes in fundamentals, such as the strong earnings report. She said there was also a “technical component” driving the larger-than-usual moves.

“We actually see that as the market goes up a little bit, it tends to go up a lot.”

US government bond yields, a benchmark for borrowing costs, are largely unchanged. The yield on the two-year bond fell to 4.45 percent. The yield on the 10-year note was unchanged at 4.02%. Yields move inversely to prices.

In other markets, the price of West Texas Intermediate crude, the US benchmark, fell 0.3 percent, to $85 a barrel. The price of Brent crude, the global benchmark, also fell 0.1 percent to nearly $92 a barrel.

London’s FTSE 100 closed with a gain of 0.9 percent, the British pound strengthened and British government bond yields fell after Jeremy Hunt, newly installed On Monday, the Treasury Secretary announced further backsliding from Ms. Truss’ plan to Tax deductions financed by additional borrowing.

“At a time when markets are rightly calling for sustainable public fiscal commitments, it is not right to borrow to fund this tax cut,” said Mr. Hunt.

Last week, the data showed that Inflation in the United States It hasn’t calmed down as much as economists had expected, in a sign that the Federal Reserve is likely to announce another big rate hike at its next meeting in November. This possibility, combined with a survey that showed an increase in consumers’ expectations of future inflation, cast a shadow over the markets.

“We believe this volatility will continue,” said Ms. Akulian. “Probably until the end of the year and maybe even then so that we have a little more concrete sense of what the Fed can do.”