NEW YORK: Stocks surged globally on Friday in their best day in five months as strong U.S. corporate earnings reports fueled optimism about the economy, though three-year-high oil prices kept inflation risks alive and lifted government bond yields.
U.S. investment bank Goldman Sachs Group Inc was the latest on Wall Street to trounce market expectations when it reported a 66% surge in third-quarter profit, thanks to a record wave of investment banking activity.
Though some analysts warned investors against complacency so early in the earnings season, especially given current constraints in the supply chain, U.S. stocks joined Friday's rally in global equities.
The Dow Jones Industrial Average jumped 1.1% in its best weekly performance since June 25. The S&P 500 climbed 0.75% to notch its best week in 2-1/2 months, and the Nasdaq Composite added 0.5%.
The pan-European STOXX 600 index rose 0.74% and MSCI's gauge of stocks across the globe gained 0.86%, the biggest daily rise since May 14.
"We are clearly off to a good start of the third-quarter earnings season, but have miles to go before we sleep," said Arthur Hogan, chief market strategist at National Securities Corp. Hogan noted that...