The stock market snapped back at the end of a dizzying week as traders reduced their wagers on a bigger Federal Reserve hike in July, while parsing a raft of Wall Street earnings and hoping for signs of capitulation that could set the stage for a more sustained recovery.
American equities halted a five-day slide, with the expiration of about $1.9 trillion in options. Banks led gains after Citigroup Inc.’s blowout results. Swaps are pricing in nearly 75 basis points of Fed tightening this month -- down from a full-point bet earlier in the week -- but still an aggressive boost that leaves investors wondering about the odds of a recession. The dollar and bond yields fell. Oil rose, while ending below $100 a barrel.