Market Wrap: Big Banks Boost Stocks, Treasuries Rise with Oil

Stocks rose as major US banks reported solid earnings, with the S&P 500 heading towards a back-to-back weekly gain. The KBW Bank Index increased by 1.3%, driven by JPMorgan Chase & Co.'s record net interest income and bullish forecast, Wells Fargo & Co.'s beat of analysts' expectations for net interest income, and Citigroup Inc.'s best third quarter for rates and currencies traders in at least eight years. Treasuries climbed alongside oil as Israel prepared for a possible ground invasion of Gaza, and swap contracts indicated reduced odds of another central bank hike.