Shares of banks and other lenders and money managers rose alongside the yield on the 10-year Treasury note after the Federal Reserve made a formal pledge to keep rates near zero until the U.S. reaches full employment.
The Fed's dovishness and its upward revision of gross-domestic product in the second quarter reflected a "nice combo" for stock bulls, said Ryan Detrick, chief market strategist at brokerage LPL Financial, in a note to clients.
Bank gains were also spurred by a record high reading of home-builder confidence, suggesting that mortgage volumes will pick up even if profit margins on the loans remain slim.
Fed officials projected no plans to raise interest rates through 2023 and delivered more detail about why they think the economy will need support for so long amid an uneven recovery from the coronavirus pandemic.
Deutsche Bank plans to tell U.S. employees they don't have to return to the office until July 2021. The decision follows JPMorgan Chase's request for senior trading staff to return to the office in late September, an approach that smaller Wall Street banks seem to be rejecting.
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(END) Dow Jones Newswires
September 16, 2020 17:02 ET (21:02 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.