Shares of banks and other financial institutions rose amid strong earnings.

Northern Trust rose after the custodial bank and financial-services firm posted earnings ahead of Wall Street expectations.

There's a divergence on the stock and bond markets, as equity traders take a sanguine view of President Donald Trump's policy plans and bond markets appear to anticipate inflationary tariffs, said one strategist. "Rates are the one thing everyone's struggling with," said JJ Kinahan, chief executive of IG North America and president of its brokerage tastytrade. "The question many of them are asking themselves is 'what's the bond market telling us the stock market isn't?'"

Bullishness, or an expectation that stock prices will rise over the next six months, soared 18 percentage points to 43.4% in the latest sentiment survey from the American Association of Individual Investors. The sentiment readings are sometimes viewed as contrarian indicators, but another strategist said the optimism may be warranted on this occasion.

"There are plenty of catalysts underpinning the recent advance," said Adam Turnquist, chief technical strategist at brokerage LPL Financial. "President Trump brings a pro-growth agenda to Washington, along with expectations of reduced regulations and the prospect of lower taxes."

JPMorgan increased the annual pay for Chief Executive Jamie Dimon by $3 million to $39 million.


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

(END) Dow Jones Newswires

01-23-25 1811ET