Shares of banks and other financial institutions rose as strategists forecast a deal bonanza on Wall Street during a second Trump administration.

Deal rainmakers such as Goldman Sachs Group, Blackstone and Apollo Global Management rose sharply to all-time highs. One strategist said the stock-market gains in response to the election of Trump were particularly stark because they came against a backdrop of rising interest-rate expectations.

In recent weeks, solid economic data has led to a widening spread between the Federal Reserve's official targeted number of rate cuts and the bond market's rate assumptions, said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "The Street is already recalibrating, as far as that's concerned, and it's looking like, even though there are fewer cuts expected, markets have continued to rally." For a long time, rate expectations and stock-market performance -- "that was so correlated," said Joyce.

Coinbase Global shares shot up alongside bitcoin, which hit an all-time high above $85,000.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

11-11-24 1749ET