The S&P 500 climbed on Wednesday, with Morgan Stanley and Bank of America rallying after solid quarterly results, while investors remained focused on the recent escalation of China-U.S. trade tensions. Morgan Stanley's shares hit a record high and were last up 5.8%, while Bank of America rose 3.9% after the top lenders beat Wall Street estimates for third-quarter profit on dealmaking strength.

The S&P 500 banking index rose 1.6% and was set to log its first three-day winning streak in more than three weeks. A day earlier, Goldman Sachs and JPMorgan Chase reported solid performance in investment banking and predicted that the business would continue to boom. This week's bank results indicate strength for major U.S. companies as third-quarter earnings season kicks off, and they also provide

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