Banks, health care companies lead stocks slightly higher
A late wave of buying helped nudge U.S. stock indexes slightly higher Friday after a day of mostly listless trading.
Banks and health care stocks climbed the most as investors priced in an increasing likelihood that interest rates will rise in the coming months.
Federal Reserve Chair Janet Yellen helped stoke those expectations in a speech in which she said an improving job market and rising inflation would likely prompt the central bank to increase borrowing costs.
“The real takeaway here is if the Fed is willing to start moving, they see the economy as not only doing better but likely to do better going forward,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. “The Fed is notorious for waiting until the evidence of growth is absolutely undeniable.”