Financial companies led stocks on Wall Street Thursday broadly higher as traders welcomed reports that the Federal Reserve and other regulators are lifting some restrictions on banks’ ability to make investments.
After a jumpy trading day, the S&P 500 rose by 1.1%. At one stage, before the rebound accelerated towards the end of the day, the index was down 0.9%.
The gains reversed some of the losses from the S&P 500 a day ago, when the index had its biggest fall in almost two weeks.
Banks have soared since the Fed and four regulatory agencies have announced they would amend a regulation that has restricted the ability of banks to make investments in areas such as hedge funds. The rule change could free the banking industry of billions of dollars in capital.
“It’s actually very important to the banks,” Wilmington Trust chief investment officer Tony Roth said.
Stocks exchange of technology and health care have helped to boost the market and offset the declines in electricity. Bond yields were down a sign of investor caution.
Stock Prices Rose, Good News for Them
The Industrial Average of Dow Jones rose 299.66 points, or 1.2%, to 25,745.60. The Nasdaq, who reached an all-time high earlier this week, added 107.84 points, or 1.1%, to 10,017 points. The Russell 2000 Small Company stock index recorded the largest increase, rising to 1,413.31 by 23.57 points, or 1.7 percent.
The S&P 500 has added 33.43 to 3.083.76 points. As of the fourth quarter of 1998, the benchmark index has been on track for its best year.
Until this week, markets had rallied mainly on expectations that U.S. states and regions around the world will begin to lift the spring lockdowns set up to limit coronavirus spread.
After broad overnight losses in Asia, shares in Europe closed higher. Germany’s DAX rose by 0.7%, while the CAC 40 rose by 1% in Paris. The FTSE in London gained 0.4%.
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