Shares of banks and other financial institutions rose as traders bet the Federal Reserve will avoid roiling markets with its policy statement next week.

Some strategists are concerned about the divergence between the stock market and the Treasury market at the dawn of the second Trump administration, but veteran Wall Street watcher Jim Paulsen said there's good reason for it. "The bond market has been blistered a bit [since the] Fed started easing, as I think a lot of people thought then -- and still think now -- that the economy's in pretty good shape, so there's no reason to be easing," said Paulsen.

Italy's Banca Monte dei Paschi di Siena launched a $13.86 billion all-share offer to buy peer Mediobanca Banca di Credito Finanziario, the latest sign of dealmaking appetite among European banks.

Affirm Holdings has lined up $750 million in funding from the asset-management unit of insurer Liberty Mutual, bringing in additional capital to fuel its consumer-lending activities.

American Express shares fell slightly after the credit-card lender said it was unclear whether the surprisingly strong growth in its affluent clients' holiday spending would continue at the same rate in 2025. Still, AmEx said initial indications for spending were promising.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-24-25 1743ET