Financial Markets                      10/15 09:34

   

   NEW YORK (AP) -- Stocks are climbing on Wednesday following strong profit 
reports from some of the world's biggest names in banking and technology.

   The S&P 500 rose 0.9%, coming off a roller-coaster day where it careened 
between a sharp loss and modest gain. The Dow Jones Industrial Average was up 
320 points, or 0.7%, as of 10 a.m. Eastern time, and the Nasdaq composite was 
1.1% higher.

   Tech stocks helped lead the way thanks in part to a profit report from ASML, 
which is a major supplier to the semiconductor industry. The Dutch company said 
it expects its revenue for 2025 to be 15% above last year's, while next year's 
should be at least as high as this year's.

   "On the market side, we have seen continued positive momentum around 
investments in AI," CEO Christophe Fouquet said, "and have also seen this 
extending to more customers." That's key when worries have been high that a 
bubble may be forming in artificial-intelligence technology, with too much 
investment flowing in akin to the 2000 dot-com frenzy.

   Outside of ASML's 2.2% rise in Amsterdam, Nvidia added 1.2% on Wall Street, 
and Broadcom rallied 3%. The chip companies were two of the strongest forces 
lifting the S&P 500.

   Also helping the market were several big banks. Bank of America climbed 3.9% 
after delivering a profit for the latest quarter that was stronger than 
analysts expected. CEO Brian Moynihan said every line of the bank's business 
reported growth.

   Morgan Stanley climbed 6.9% after likewise reporting a stronger profit than 
analysts expected.

   They helped offset a 3.9% loss for PNC Financial. It reported a 
stronger-than-expected profit for the latest quarter, but it also gave a 
forecast for upcoming earnings that some analysts said was below expectations.

   Abbott Laboratories sank 2.8% after its revenue for the latest quarter 
finished just shy of analysts' expectations.

   Companies are under pressure to deliver strong profits after their stock 
prices broadly surged 35% from a low in April. To justify those gains, which 
critics say made their stock prices too expensive, companies will need to show 
they're making much more in profit and will continue to do so.

   Corporate profit reports are also under more scrutiny than usual as 
investors hunt for clues about the health of the U.S. economy. That's because 
the U.S. government's latest shutdown is delaying important updates on the 
economy, such as the report on inflation that was supposed to arrive Wednesday.

   The lack of such reports is making the job more difficult for the Federal 
Reserve, which is trying to figure out whether high inflation or a slowing job 
market is the bigger problem for the economy.

   The Fed cut its main interest rate last month for the first time this year, 
and officials indicated more may be on the way in hopes of giving the job 
market a boost. But too low interest rates can push upward on inflation, which 
has already been stubbornly stuck above the Fed's 2% target.

   Comments from the Fed's chair, Jerome Powell, on Tuesday may have hinted 
more cuts to rates may be on the way. In the bond market, the yield on the 
10-year Treasury eased to 4.00% from 4.03% late Tuesday.

   Also weighing on the market recently have been worries about escalating 
tensions between the United States and China. President Donald Trump has gone 
back and forth in his criticism of China, particularly about restrictions it's 
placed on exports of rare earths, which are materials that are critical for the 
manufacturing of everything from consumer electronics to jet engines.

   One big winner because of all the uncertainty has been gold, and its price 
rose another 1.1% to top $4,200 per ounce. It's up nearly 60% for the year so 
far as investors look to buy something that can offer protection from trade 
wars, real military wars and the prospect of higher inflation coming because of 
mountains of debt being amassed by the U.S. and other governments worldwide.

   In stock markets abroad, indexes were mixed in Europe after a stronger 
finish in Asia.

   South Korea's Kospi jumped 2.7%, and France's CAC 40 rose 2.1% for two of 
the world's bigger moves.

   ___

   AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

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