Shares of banks and other financial institutions rallied as traders bet the sector would benefit from a loosening of regulations and a reduction in antitrust enforcement.
Most Wall Street strategists are projecting significant gains for the S&P 500 this year.
"The outlook for this year is overwhelmingly positive -- that's both a blessing and a curse," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. From a contrarian point of view, "it's always somewhat concerning when everyone is calling the same directional outlook. Either the fundamentals are so convincingly positive...or group-think is creeping in, which is rarely a good thing."
Philadelphia Federal Reserve President Anna Paulson said the Federal Reserve may be able to cut interest rates further if inflation cools further, but hinted that the next rate cut may not be imminent.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-05-26 1830ET
