Shares of banks and other financial institutions rallied alongside Treasury yields as a $1.9 trillion economic-stimulus package neared passage.
The SPDR Financial Select Sector exchange-traded fund, which tracks the financial industry group on the Standard & Poor's 500, closed at its highest ever level, as steadily rising economic-growth expectations and Treasury yields, and a rotation out of the technology sector combined to give the sector a lift.
The 10-year yield briefly rose as high as 1.610% on Monday morning, surpassing the 1.609% hit when Treasurys sold off sharply on Feb. 25, according to Tradeweb.
One strategist said the spike in yields may not weigh on the stock market for long, as it's accompanied by an even bigger spike in economic growth.
"Consequently, rising yields may prove far less damaging for stock investors this year in an economy enjoying a post-pandemic boom," said Jim Paulsen, chief investment strategist at money manager The Leuthold Group, in a note to clients.
Troubled commercial lender Greensill Capital filed for insolvency protection, days after regulators took over its banking unit and Credit Suisse Group froze investment funds that were critical to the startup's operations.
China's main stock benchmarks tumbled, erasing all of this year's gains, as investors grappled with signs that policy makers in Beijing will take more action to rein in debt and prevent asset bubbles from forming.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-08-21 1715ET
