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Indexes up: Dow 0.77%, S&P 500 0.98%, Nasdaq 1.16%

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Bank of America ( BAC ) raises NII forecast; Q3 profit tops Street

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Morgan Stanley's ( MS ) shares hit record high after Q3 profit

beats

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US chipmakers gain after ASML results

(Updates after markets open)

By Sukriti Gupta and Twesha Dikshit

Oct 15 (Reuters) -

Wall Street's main indexes rose on Wednesday after solid

results from Bank of America ( BAC ) and Morgan Stanley ( MS ), while

chipmakers climbed as ASML reported strong quarterly results.

Morgan Stanley's ( MS ) shares hit a record high and

were last up 7.2%, while Bank of America ( BAC ) rose 4.4% after

the top lenders beat Wall Street estimates for third-quarter

profit on dealmaking strength. Bank of America ( BAC ) also

raised

the low end of its interest income forecast range.

"We've seen really good results from the big banks that

have reported thus far, some impressive beats there, so I would

expect that we'd see positive sentiment and a good market

reaction," said Kristina Hooper, chief market strategist at Man

Group.

Meanwhile, U.S. Treasury Secretary Scott Bessent said at

a CNBC event that the wave of investment into the U.S. economy

is

sustainable

and is only getting started.

A day earlier, lenders including Goldman Sachs ( GS ) and

JPMorgan Chase ( JPM ) reported solid performance in investment

banking and predicted that the business would continue to boom.

The results indicate early strength in the third-quarter

earnings season in corporate America, providing a proxy for the

economy while government reports are on hold.

U.S. chipmakers rose after ASML reported

third-quarter orders and operating income above market

expectations. U.S.-listed shares of ASML advanced 3%.

Micron Technology ( MU ) added 1.4% and Advanced Micro

Devices ( AMD ) rose 6.5%. Intel ( INTC ) and Nvidia ( NVDA )

added 1.5% and 1.2% respectively.

At 10:03 a.m. ET, the Dow Jones Industrial Average

rose 358.55 points, or 0.77%, to 46,627.33, the S&P 500

gained 65.39 points, or 0.98%, to 6,709.70 and the Nasdaq

Composite gained 261.64 points, or 1.16%, to 22,783.34.

The S&P 500 tech and financials

sectors led the broader gains, rising 1.3% and 0.8%,

respectively.

The S&P 500 banking index rose 2.1% on the day.

A slate of Fed officials are set to speak later in the day.

Fed's Beige Book of economic condition, due at 2:00 p.m. ET, is

also on radar.

Fed Governor Stephen Miran at a CNBC event said "two

more cuts this year sounds realistic", noting that the labor

market has clearly weakened.

Federal Reserve Chair Jerome Powell left the door open to

rate cuts on Tuesday by saying the U.S. labor market remained

mired in low-hiring, low-firing doldrums.

Bessent also told CNBC he

plans to present

three or four Fed chief candidates to President Donald

Trump for him to interview sometime after Thanksgiving.

Meanwhile, Trump on Tuesday said Washington was considering

cutting some trade ties with China, including in relation to

cooking oil. That came after the two countries began imposing

tit-for-tat port fees, adding to concerns about the China-U.S.

trade war.

Bessent said officials from both countries are working to

set up a meeting.

Among other stocks, Abbott declined 2.7% on downbeat

quarterly revenue.

Progressive Corp ( PGR ) lost 7.8% after the insurer

reported third-quarter results.

Bunge rose 10.9% despite the company

lowering

its 2025 earnings forecast following its merger with

Viterra.

On the Nasdaq, 3,097 stocks rose and 1,016 fell as

advancing issues outnumbered decliners by a 3.05-to-1 ratio.

The S&P 500 posted 29 new 52-week highs and two new

lows, while the Nasdaq Composite recorded 103 new highs and 15

new lows.