Banks, lenders and other financial companies rose as traders prepared for a rate hike from the Federal Reserve later in the month. Despite the likelihood of a hike, most analysts expect borrowing rates to increase very slowly this year and next. The financial sector may not see a sharp increase in lending profits, but would benefit from the market stability if the Fed moved very slowly. "Broad-based growth, contained inflation, still relatively easy policy and low volatility should drive more aggression among investors and corporates" for the balance of 2017, said portfolio strategists at brokerage Morgan Stanley, in a note to clients. "While 2018 looks far more challenging, we'd remain constructively positioned for now."
Continue Reading Below
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
June 05, 2017 16:27 ET (20:27 GMT)