US stocks advanced, even as shares of big banks fell on a warning from JPMorgan that investors were being too optimistic on its earnings for next year.
The S&P 500 was up 0.2 per cent in afternoon trading, while the tech-heavy Nasdaq Composite added 0.6 per cent, helping them recover ground after a big weekly drop.
Bank stocks were weaker, though, with JPMorgan on course for one of its biggest daily drops in years, down almost 6 per cent in afternoon trading. Shares of peers, including Bank of America, Wells Fargo and Citi were also lower.
Investors are also looking ahead to consumer and producer price inflation due on Wednesday and Thursday, respectively, to determine clues of the US central bank’s latest move when it weighs a rate cut next week.
Treasuries rallied, bringing the yield on the two-year and 10-year notes down to 3.60 per cent and 3.65 per cent, respectively.
