Financial stocks drive S&P, Nasdaq to record closing highs

The S&P 500 and Nasdaq once again clinched all-time closing highs on Wednesday spurred by a rally in financial and chip stocks.

Rising Treasury yields lifted rate-sensitive bank stocks like JPMorgan Chase and Bank of America.

Stocks that stand to benefit from the economic recovery – chips and small cap stocks - also surged higher.

Gideon Strategic Partners Chief Investment Officer Erik Oros said the rebound in small cap stocks bodes well for cyclical stocks.

“Today we're seeing small caps outperform. That has been a a real sea change over the last few weeks, and it really was kind of taking it on the chin. The Russell has broken above its 50 day for the first time in a long time. Seeing some momentum there, I think is helping, we’re seeing our reflation trade kind of come back in vogue a little bit today.”

The Dow crawled a tenth of a percent higher. The S&P 500 and Nasdaq tacked on roughly a fifth of a percent.

Shares of Dick’s Sporting Goods jumped over 13%. The retailer announced a special dividend and lifted its annual sales and profit forecast.

But shares of high-end department store operator Nordstrom dropped nearly 18%. Quarterly revenue declined 6% from pre-health crisis levels – a sharp contrast to the strong growth posted by rivals Macy’s and Kohl’s.

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