Wall Street rallies amid BofA results and cancellation of fiscal measures in the UK

On Monday, the trading week gave way to a stock rally in the US market. It was affected by the revised UK economic plan. In addition to this, the Bank of America's strong earnings results lifted optimism about the corporate earnings season. 

Jeremy Hunt has been recently appointed Britain's finance minister. He immediately scrapped almost all of Liz Truss's proposed tax cut, which kept investors on their toes in recent weeks.

Bank of America Corp shares jumped as the Fed's rate hikes had a positive impact on the bank's net interest income. 

As stated by Emily Roland, co-chief investment strategist at John Hancock Investment Management, in a turbulent market like this, any good news could make a big difference. According to her, sentiment about UK affairs ticked up, with financial firms' earnings supported by a number of factors. Increased net interest profit is a key element for them, banks will benefit from rising rates. Therefore, their third-quarter earnings look better than expected.

However, aggressive interest rate hikes by the Fed could be a stumbling block.