(Reuters) – Wall Street rose on Friday after a bounce in technology and other high-growth stocks led a fight back from its worst two-day slide in eight months, while early gains from strong earnings of the biggest U.S. lenders faded.
PNC Financial (PNC.N) led the losses among bank stocks with a 6.3 percent drop after the regional bank reported disappointing quarterly loan growth and said it expected only a small improvement in lending this quarter.
The S&P 500 banks index .SPXBK slid 1.65 percent, also weighed down by JPMorgan Chase & Co (JPM.N) reversing early gains to trade down 1.8 percent despite its quarterly profit beating expectations.
“Rising interest rates, higher yields and an accelerating economy sets the perfect environment for banks but the fact that they have underperformed the markets is a factor that has weighed,” said Aaron Clark, portfolio manager at GW&K Investment Management in Boston.
The S&P 500 technology index .SPLRCT rose 1.77 percent, providing the biggest boost to the S&P 500 .SPX.
“The past few days were a bit of a wake-up call, but it also created an opportunity for those who have been missing out to buy some of these high-growth technology names,” said Jason Browne, chief investment strategist at FundX Investment Group in San Francisco.
The bank results launch a quarterly reporting season that will give the clearest picture yet of the impact on profits from President Donald Trump’s trade war with China.
Earnings at S&P 500 companies