Shares of banks and other lenders and money managers fell as investors hedged their bets on the outlook for economic-stimulus negotiations.

One brokerage said the current rally in the stock market, which has brought the Standard & Poor's 500 to the brink of a new record, could continue, largely because of the plunge in interest rates, which makes the cost of capital cheap for both corporations and investors.

"The S&P 500 level has returned to its pre-pandemic high, but the building blocks supporting the price have shifted dramatically," said strategists at brokerage Goldman Sachs Group, in a note to clients.

"A plunging risk-free rate partially explains why equities have performed so well despite downward revisions to expected earnings."

Credit-card provider American Express has agreed to buy nearly all of financial technology Kabbage as it seeks to expand its services for small businesses. 



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