Shares of banks and other lenders and money managers rose sharply as investors rotated into sectors that would benefit from a second major economic stimulus bill.
The "risk-on" rally triggered by vaccine developments and the resolution of presidential-election doubts caused a stunning run-up that could leave the stock market ripe for a pause, said one strategist.
"The one thing that does cause us to tread a little lightly into December is the fact that sentiment has turned [so] positive," said Eric Marshall, president of Dallas mutual-fund firm Hodges Capital.
"It doesn't mean there's near-term doom-and-gloom on the horizon.[But], when you have so much optimism and so much positive investor sentiment, it usually mutes short term returns, especially when you're coming off a month like we had in November."
In a sign of the growing power of the "buy side" on Wall Street, many of the prominent economic positions under President-elect Joe Biden look set to go to executives of money manager BlackRock.
Mr. Biden is expected this week to name BlackRock's head of sustainable investing, Brian Deese, to run the National Economic Council, and Adewale "Wally" Adeyemo, a former chief of staff to BlackRock's chief executive, as the No. 2 at the Treasury Department.
The European Central Bank's chief economist made dozens of private calls to banks and investors after policy meetings this year, an unusual attempt to buttress the central bank's sometimes-puzzling public communications.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-01-20 1705ET
