Shares of banks and other lenders and money managers rallied as investors rotated into sectors with more to gain from a return to economic normality.
The financial sector is gaining alongside Treasury yields after a drop in the benchmark rates had weighed on the sector earlier this year, said Quincy Krosby, chief market strategist at Prudential Financial. Still, the wild swings on stock and bond markets may continue for some time, said Ms Krosby.
"I think we're going to go through periods of volatility based on the stimulus headlines, and coupled with how severe the virus is in terms of response from local governments regarding restrictions and shutdowns."
The Russell 2000 index of small caps, which carries a large quotient of financial companies, had its strongest opening 10 days of any month on record.
The chief executive of mortgage-finance company Freddie Mac, David Brickman, plans to step down in January, the company said in a securities filing Friday, a surprise move that comes as prospects dim for an exit from government control for the firm and its larger sister, Fannie Mae.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
11-13-20 1741ET
