Banks and other financial companies made big gains Friday after President Trump moved to scale back regulations on the financial industry. Other stocks also rose as investors were also pleased that employers hired workers at a faster pace in January.
Financial stocks made their biggest gains since shortly after the presidential election as Trump took his first steps to reduce regulation of the industry. Those changes could boost profits for investment firms.
“They’re going to benefit from not having all of this onerous red tape,” said Karyn Cavanaugh of Voya Investment Strategies. “That’s why we see the rallies every time they talk about regulation.”
The Labor Department said hiring sped up last month, a positive sign for the economy. Small-company stocks, which stand to benefit more than others from stronger economic growth, make sharp gains.
The Russell 2000 index of smaller-company stocks climbed 20.41 points, or 1.5 percent, to 1,377.84.
The Dow Jones industrial average jumped 186.55 points, or 0.9 percent, to 20,071.46.
The Standard & Poor’s 500 index advanced 16.57 points, or 0.7 percent, to 2,297.42. The Nasdaq composite picked up 30.57 points, or 0.5 percent, to close at a record high of 5,666.77.