U.S. Stocks Open Higher as Banks Report Results

Wall Street stocks opened solidly higher Tuesday, bouncing back from a lackluster session as major banks kicked off earnings season in the wake of economic hit from coronavirus shutdowns.

About 25 minutes into trading, the Dow Jones Industrial Average had gained 2.5 percent to 23,968.76.

The broad-based S&P 500 also rose 2.5 percent to 2,829.53, while the tech-rich Nasdaq Composite Index jumped 2.9 percent to 8,433.39.

Both JPMorgan Chase and Wells Fargo reported huge declines in first-quarter earnings after setting aside large provisions in case of bad loans.

JPMorgan Chief Executive Jamie Dimon said the reserves were needed "given the likelihood of a fairly severe recession."

Shares of both banks gained early Tuesday, part of a broad-based rally that lifted all 11 sectors of the S&P 500.

Analysts said the gains reflected optimism after officials in New York and some other hotspots described the coronavirus outbreak as stabilizing.

Officials are beginning to discuss the process to reopen the economy, although the timetable remains highly uncertain.