Shares of banks and other financial institutions rose as earnings from some major banks were not as bad as feared.
Shares of Citigroup rose by more than 13%, cutting losses for the year to date by one third, after the global bank reported a jump in demand for financial services from companies trying to position themselves for rising interest rates.
Wells Fargo shares rose despite reporting a 48% drop in second-quarter profit, hurt by a slowdown in mortgage lending and a decline in the value of equity investments.
The world's largest money manager by assets, BlackRock, said its second-quarter profit fell 22% as a bruising stock-market downturn hurt portfolio values and spurred withdrawals. Shares of BlackRock rose in tune with the broad stock market Friday.
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