Wall Street surges following strong profits as earnings season kicks off; UBS sees ‘bull market intact’

Market Performance - Stocks are climbing, with the S&P 500 rising 0.8%, the Dow Jones Industrial Average up 254 points (0.5%), and the Nasdaq composite increasing by 1.1% [1] - Tech stocks, particularly ASML, Broadcom, and Nvidia, contributed significantly to the market gains [5][7] Earnings Reports - UBS noted that early-reporting companies have a good relationship with the overall earnings season, with 80% beating sales estimates and over 70% beating earnings-per-share estimates [2] - The median company is beating earnings by 2.2%, lower than the historical average of 3.5% [2] - Bank of America reported a profit stronger than expected, leading to a 5.2% increase in its stock [7] - Morgan Stanley's stock rose 6.4% after reporting better-than-expected profits, following strong results from JPMorgan Chase and Wells Fargo [8] Economic Indicators - Corporate profit reports are under increased scrutiny as investors seek insights into the U.S. economy's health, especially with delays in key economic updates due to the government shutdown [10] - The Federal Reserve cut its main interest rate last month, with indications of potential further cuts to support the job market [11] Industry Trends - ASML expects its revenue for 2025 to be 15% above last year's, indicating strong growth in the semiconductor industry [5] - There is positive momentum in AI investments, despite concerns about a potential bubble similar to the 2000 dot-com frenzy [6] Commodity Market - Gold prices rose 1.3% to over $4,200 per ounce, reflecting a nearly 60% increase for the year as investors seek safe-haven assets amid economic uncertainties [13]