Shares of banks and other financial institutions rose, but pared gains after the Federal Reserve committed to low rates for an extended period of time.
The yield on the 10-year Treasury yields after the Federal Reserve sounded relatively optimistic notes on the prospects for the U.S. economy.
While Fed Chairman Jerome Powell said it was too early to consider "tapering" bond-buying activity, which is likely to be the first step in removing monetary stimulus, he also stated that the vaccine rollout should lead to a return to economic normality.
"The first question asked to Powell was if it was time to start talking about tapering," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group. "Powell reaffirmed that it is not time yet to have a conversation about tapering, sending Treasury yields sharply lower."
Shares of Deutsche Bank rallied after the troubled German lender posted its first quarterly profit in recent years, helped by strength in both commercial banking and investment banking units.
Spanish lender Santander saw shares rally after Shares of U.K. lender Lloyd's Banking Group said first-quarter pretax profit rose sharply and beat expectations, helped by an impairment credit, and upped its full-year outlook.
Fidelity Investments is expanding a business in lending securities, a once-avoided business that helps money managers profit on those eager to bet against stocks, as reported earlier.
The European Union fined Credit Suisse Group, Bank of America and Crédit Agricole a combined $34 million for illegally colluding on trades in government bond markets at the expense of their clients.
Write to Rob Curran at firstname.lastname@example.org
(END) Dow Jones Newswires