Shares of banks and other financial institutions fell, giving back some of their recent gains despite deal activity.

BlackRock has agreed to buy private-credit manager HPS Investment Partners in a roughly $12 billion all-stock deal that would substantially add to its coveted private-asset pile. Lending by asset managers to closely held startups and merger-and-acquisition players has been among the most lucrative Wall Street niches in recent years, and one that BlackRock has pledged to explore.

Among other activities, HPS serves as a non-bank lender to private firms. Looser financial regulations in the second Trump administration could extend the private-credit boom. One strategist said a strong November performance for the broad stock market boded well for the balance of the year. "December is consistently among the strongest months for the stock market as mutual funds engage in year-end 'window dressing,' buying into winners to impress clients in year-end statements," said George Smith, investment strategist at brokerage LPL Financial. "These strong returns are historically often back-end loaded, hence the 'Santa Claus Rally' market axiom, that describes the idea that the final few days of December are a strong period for stocks."


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

(END) Dow Jones Newswires

12-03-24 1753ET