Big US banks reported higher second-quarter profits due to rising interest rates, sending shares soaring.

Morgan Stanley predicted an uptick in M&A deals, while Bank of America and Bank of New York Mellon profited from charging clients higher interest rates as the Federal Reserve raised borrowing costs.

Bank of America’s net interest income climbed 14% to $14.2 billion, beating Wall Street projections.

PNC Financial Services reported a 15% increase in NII to $3.51 billion, while BNY Mellon surpassed analyst projections with a 33% increase to $1.1 billion.

State Street forecasted a sequential NII decrease of 12-18% due to reduced deposit levels.

The S&P 500 Banks Index rose 1.9%, while the KBW Regional Banking Index rose 4%.

JPMorgan Chase, Wells Fargo, and Citigroup reported greater profits on rising rates and a solid economy, but cautioned of dangers with U.S.

consumers spending less and loan growth projected to stall.

PNC repeated those warnings on Tuesday, lowering its 2023 full-year NII growth outlook to 5% to 6% from 6% to 8%.