Stocks Rise on Enthusiasm for Everything But Banks: Markets Wrap

Trade optimism lifts benchmarks, but financial shares struggle
U.S. government shutdown continues, crude nears $50 a barrel

Matt Maley, Miller Tabak strategist, says we could get another "big dip" before finding the ultimate market bottom.(Source: Bloomberg)

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By Reade Pickert and Sarah Ponczek

January 7, 2019 at 9:44 PM UTC

Updated on

January 8, 2019 at 9:05 PM UTC

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U.S. stocks rallied Tuesday as the possibility of progress in trade talks with China overwhelmed skepticism about the financial sector. The dollar rose, Treasuries slumped and crude surged toward $50 a barrel on expectations the market will be tightened by OPEC’s output cuts.

All major indexes were higher, led by the small-cap Russell 2000 Index for a second day. The S&P 500 Index gained 1 percent on strength in transportation companies, carmakers and telephone stocks. Financials were only major industry group in the benchmark that didn’t rise. Boeing Co. helped lift large-caps with a strong fourth-quarter delivery report. PG&E Corp. was the biggest decliner, dropping 9 percent amid reports that the California utility giant is considering bankruptcy.