WASHINGTON: Shares of U.S. banks rise as better-than-expected private-sector hiring boosts chances of a rate hike next week. Investors now expect the more comprehensive nonfarm payroll report on Friday to also be positive, cementing the chances of an interest rate hike. Bank of America up 2.1 pct, Morgan Stanley 1.9 pct, Citigroup 2.8 pct, JPMorgan 1.5 pct, Goldman Sachs 1.3 pct, Wells Fargo 1.2 pct. S&P 500 financial index up 1.2 pct, biggest boost to the S&P 500 index.
Financials best performing sector since Trump’s election, with major U.S. banks hovering around record highs. Up to Tuesday’s close, BofA’s shares had risen about 48.3 pct since Trump’s Nov. 8 election, GS had increased 38 pct; they have been the top gainers from the new president’s policies. S&P 500 financial index had risen 23.5 pct, since Trump was elected, as of the stock’s Tuesday close.
