Gains for bank stocks help lead indexes higher

Stocks shook off a weak start and closed broadly higher Wednesday, nudging the Dow Jones Industrial Average to another all-time high.

The S&P 500 rose 1.1 percent after having been down 0.6 percent in the early going. Gains in financial, technology and industrial stocks powered the comeback. Utilities fell.

U.S. Treasury yields continued to head higher. Bank stocks benefited from the latest upward move in yields, which will allow them to charge higher rates on mortgages and other loans, increasing their profits. JPMorgan Chase rose 1.8 percent and Bank of America added 2.4 percent.

The S&P 500’s technology sector accounted for a big share of the rally after declining for six straight days.

“(Stocks) are back in rally mode after spending the past few days trending sideways, digesting early year gains,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “On balance, we still think the glass is half full and (stocks) trend higher as we look to the end of the year.”

The S&P 500 index rose 44.06 points to 3,925.43. The Dow climbed 424.51 points, or 1.4 percent to 31,961.86, an all-time high. The Nasdaq Composite added 132.77 points, or 1 percent, to 13,597.97.

The Russell 2000, which tracks smaller companies, continued to outpace the rest of the market, as it has since the beginning of the year. That’s a sign investors are feeling more confident about economic growth. The index rose 53.07 points, or 2.4 percent, to 2,284.38.

Investors are still anticipating another round of stimulus to help boost the economy. The U.S. House of Representatives is likely to vote on President Biden’s proposed stimulus package by the end of the week. It would include $1,400 checks to most Americans.

The afternoon rebound followed Federal Reserve Chair Jerome Powell’s appearance before Congress Wednesday. As he did before the Senate Banking Committee on Tuesday, Powell told the House Financial Services Committee that the Fed was in no hurry to raise benchmark short-term interest rates or to begin trimming its $120 billion in monthly bond purchases used to put downward pressure on longer-term rates.