Banks, Magnificent 7 power biggest gains for US stocks since Trump’s election win
The S&P 500 soared 1.8%, the Russell 2000 jumped 2%, and the Nasdaq 100 outdid them both with a 2.3% advance on Wednesday.
Data showing US inflationary pressures cooled in December and solid earnings reports fueled the S&P 500’s best day since the session following the election in November. Ten-year Treasury yields, meanwhile, had their biggest one-day decline since early August when the unemployment rate unexpectedly jumped.
Every S&P 500 sector ETF gained with the exception of consumer staples.
Banks had a fantastic session as the fourth-quarter reporting period unofficially kicked off. Strong results buoyed Goldman Sachs, Wells Fargo, Citi, and JPMorgan, with the last two hitting 52-week highs.
The Magnificent 7 cruised higher, headlined by Tesla’s 8% advance amid a litany of mixed headlines.
Buoyant stock and crypto activity propelled Robinhood Markets up 9.1% to finish at its best level since August 2021. (Sherwood Media is an independent subsidiary of Robinhood Markets, Inc.)
Heavily shorted stocks like AMC, Riot, and SoundHound AI also booked big gains on the day.
Lowlights amid the sea of green included Lululemon, Hershey, and United Airlines.
