The U.S. stock market notched its biggest gain in two months Wednesday, bouncing back from losses a day earlier.
Banks and other financial companies led the rally as investors bet that interest rates will climb further. Banks can make more money on lending when rates move higher.
Technology companies were among the big gainers, recouping some of their recent losses. Energy stocks also rose as the price of crude oil closed higher for the fifth straight day. Utilities and real estate companies were the only laggards.
“Across the board, sector strength is very, very strong,” said Marc Chaikin, CEO of Chaikin Analytics. “Whoever wanted to sell into the holiday weekend basically did it yesterday, and we probably have a positive bias going into the four-day weekend.”
The Standard & Poor’s 500 index gained 0.88 percent to end at 2,440.69. That’s the index’s biggest single-day gain since April 24. The Dow Jones industrial average rose 143.95 pointsto 21,454.61. The Nasdaq composite rose 1.43 percent to 6,234.41.
Smaller companies fared better than the rest of the market. The Russell 2000 index of small-company stocks picked up 1.6 percent to close at 1,425.27. — AP