U.S. indices bounced back overnight, posting their biggest one day gain in 2 months after financials surged +1.4% ahead of the release of the Federal Reserve’s stress test results. The Dow rose +144 points, or +0.7% , the S& P 500 rose +0.9%, and the NASDAQ jumped +1.4%.
Analysts expect several big banks to come out of the stress test with substantial increases in return to shareholders — potentially using cash reserves to pay out more than 100 percent of their profits. As a result, higher figures would also reflect banks' confidence in their own financial health.
