Citicorp's stock price edged closer to the $100 mark on Thursday, as bank issues participated in a strong marketwide rally.

Citicorp, one of many banks posting new highs, closed at $99, up $1.

Shares of Signet Banking Corp., long-rumored to be a takeover target, rose $1.625, or 5.9%, to close at $29.

The across-the-board rally came amid upbeat reports Wednesday on gross domestic product, inflation, and wages.

The Standard & Poor's bank index, consisting of large banks, gained 0.71%, while the S&P 500 gained 0.62%. The Nasdaq bank index, mostly small banks and thrifts, was up 0.25%.

"It's hard to find anything that makes investors nervous," said Anthony Davis, banking analyst at Dean Witter Reynolds. "It's really the sweet spot of the cycle."

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