Financial stocks extended their surge in premarket trade Thursday, in the aftermath of Donald Trump's election victory. The SPDR Financial Select Sector ETF rallied 0.9%, on track to open at the highest level since May 2008, after running up 4.3% on Wednesday. J.P. Morgan Chase & Co.'s stock climbed 1.3% ahead of the open, after soaring 4.6% Wednesday to a record close. Shares of Bank of America Corp. rallied 2.8% toward a 16-month high in the wake of Wednesday's 5.7% jump, while Citigroup Inc. shares rose 1.3% toward a new 2016 high after advancing 3.4% the day before. Many analysts expect the regulatory environment to ease and a boost in government spending to raise Treasury supply under a Trump presidency, which should lift longer-term interests rates. And higher long-term yields can boost bank profits, as they increase the spread between what banks earn by funding longer-term assets, such as loans, with shorter-term liabilities The yield on the 10-year Treasury note increased 0.018 percentage points to 2.09% early Thursday, after closing at a 10-month high on Wednesday. The XLF has gained 7.7% year to date through Wednesday, while the Dow Jones Industrial Average has advanced 6.7%.
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