Shares of banks and other lenders and money managers fell slightly as investors hedged their bets on the outlook for interest rates.

The broad Standard & Poor's 500 hit a fresh record high, a development that was almost unthinkable during the March pandemic-related plunge in the stock market. "Even the most optimistic people in March were unlikely to have expected the market to recoup all of its losses in less than 5 months, however, the massive amounts of liquidity that the Federal Reserve has injected into the system is a big reason for the stunning recovery that we have just witnessed," said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, in e-mailed commentary.

For financial firms, the central-bank actions have been a mixed blessing, however. Treasury yields have wallowed near all-time lows for months, eroding profit margins on loans.

A federal judge granted Citigroup's request to freeze roughly $175 million the bank said it paid hedge-fund manager Brigade Capital Management by mistake on a loan owed by troubled cosmetics company Revlon, allowing it to continue a dispute with a hedge-fund firm over Brigade's right to keep the money. 


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