A popular way to wager on the financials sector on Monday was on pace for its best daily rise in about six weeks, according to FactSet data. The Financial Select Sector SPDR ETF, which closely tracks the S&P 500's financials sector was gaining 1.24%, with all of its components in positive territory in late-morning trade, putting the financials-focused fund on track for its best one-day climb since July 3. Notably, shares of Goldman Sachs Group Inc. , among the larger components in the ETF, and Citizens Financials Group Inc. were leading the charge, up at least 2%. The rally in financials helped to power a 0.9% climb in the broad-market S&P 500 and coincided with a global rebound in equities. The Dow Jones Industrial Average was up 0.6%, and the Nasdaq Composite Index gained 1.1%. Gains in the banking sector come even as the 10-year benchmark yield hovers around historic lows at 2.21%. Higher yields tend to be bullish for financials loan business, but doubts that the Federal Reserve will lift interest rates and unwind its $4.5 trillion balance sheet has kept rates. Sluggish inflation and recent tensions between North Korea and the U.S. has amplified the slump in yields.
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