Banks traded higher as investors anticipated higher interest rates and bigger profits on mortgages and other loans. Banks rose the most, as higher interest rates help their profits from lending. The Federal Reserve has been saying for months that it intends to raise interest rates if the economy’s strength warrants it. The Nasdaq composite closed at a record high as tech stocks continued to climb. July’s report provides more evidence the economy is doing well, boosting the chances that interest rates will go up.

Source: New York Times August 05, 2016 14:24 UTC