The SPDR Financial Select Sector ETF surged 1.4% Wednesday, to close at the highest level since May 29, 2008, as bank investors continued to cheer the run up in longer-term interest rates. Among the ETF's most heavily-weighted components, shares of Wells Fargo & Co tacked on 0.9% to an all-time closing high, J.P. Morgan Chase & Co. jumped 1.6% to a record high, Goldman Sachs Group Inc. gained 2% to the highest close since Dec. 31, 2007 and Citigroup Inc. shot up 1.8% to its first close above $57 since Jan. 13, 2009. Meanwhile, the yield on the 10-year Treasury note rose to 2.478%, the highest yield since Sept. 30, 2014, as investors anticipate that the Federal Reserve will raise interest rates sooner than later following strong May jobs data out last week. Rising long-term interest rates often boost banks' earnings, as it increases the spread they earn from funding longer-term loans with shorter-term borrowings. The financial ETF has gained 5.2% over the past three months, while the S&P 500 had advanced 3%.
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