Banking stocks rose with the broader markets Wednesday as investors welcomed a report that indicates inflation is not a growing threat to the economy.
The KBW Bank Index rose 1.67%.
Financials and other stocks were lifted by a Labor Department report showing the largest drop in U.S. producer prices in seven months, bolstering a sentiment that the Federal Reserve will keep interest rates low to avoid disrupting the economic rebound.
The Dow Jones industrial average rose 0.45% and the Standard & Poor's 500 index rose 0.58%.
Large and regional banks advanced.
JPMorgan Chase & Co. rose 1.27%; Bank of America Corp., 1.41%; Wells Fargo & Co., 0.89%; and Citigroup Inc. was unchanged.
BB&T Corp. rose 1.8%; Fifth Third Bancorp, 1.86%; M&T Bank Corp., 1.65%; PNC Financial Services Group Inc., 2.29%; and Regions Financial Corp., 2.53%.
