us stocks rallied on monday as investors awaited a deluge of corporate earnings and after a uturn on tax policy by the uk government helped soothe global bond markets stocks experienced extremely volatile trade last week with major indexes reversing steep losses thursday to end sharply higher only to tumble againon friday the dow saw a 12 weekly fall while the sp 500 shed 16 and the nasdaq composite lost 31 financialmarket sentiment improved on monday as the result of betterthanexpected earnings from bank of america corp bac as well as developments in the uk under new finance minister jeremy hunthunt the new chancellor of the exchequer abandoned the majority of the gbp45 billion 51 billion in previously announced unfunded tax cuts that were blamed for sparking a bout of global market volatility and stoking fears of a broader breakdown of the global financial system that contributed to a sharp pullback on yields on the 30year gilt bxtmbmkgb30y or uk equivalent of treasurys which fell 48 basis points to 437two through 10year treasury yields declined in sympathy with uk ratessee uk chancellor throws out almost all major tax cuts from the minibudget and pares back energy supporttheres a combination of things giving investors some relief in terms of whats going on said jon maier chief investment officer of new yorkbased global x etfs which oversaw 47 billion of assets as of august one of them is the action taken by britains new finance minister and the other is us corporate earnings which have not been as bad as expected he said via phoneearnings season is set to pick up steam after a round of earnings from major wall street banks on friday investors welcomed results monday from bank of america while goldman sachs group inc gs is due to report tuesdayin mondays only major us economic release the new york feds empire state manufacturing index had its third straight negative reading declining 76 points to negative 91 in october compared with expectations for a reading of negative 5meanwhile last weeks volatile activity particularly thursdays historic intraday turnaround in dow industrials had analysts pondering whether stocks are exhibiting behavior associated with market bottoms one way to know if markets are overstretched is if negative news fails to sink equity markets further what we saw last thursday was different namely a deep pool of bargain hunters said sebastien galy senior macro strategist at nordea asset management in a note what we saw was likely extreme bearish positioning being reduced this is an encouraging sign but it is not yet a new dawn  we continue to prefer cautious positions galy said