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Financials led the gains on the benchmark S&P 500 on Friday following reports that US President Donald Trump will sign executive orders taking aim at the Dodd-Frank financial regulatory reform legislation and the so-called “fiduciary rule” on investment advice.
The S&P 500 financials sector advanced 1.8 per cent and within that, the banks sub-sector gained 2.3 per cent, leaving both poised for their best day since November.
Morgan Stanley shares were up 5.1 per cent to $44.26, while Goldman Sachs shares rose 4.3 per cent to $240.20. Meanwhile, Invesco shares climbed 4.2 per cent to $30.78. The KBW Nasdaq Bank Index, a closely watched barometer tracking shares of US lenders, was also up 2 per cent.
The moves come as US President Donald Trump is expected to sign two executive orders later on Friday, the first of which is expected to call for a review of Dodd-Frank regulations, and the second of which will order a review of the fiduciary rule, which required financial professionals offering retirement advice to act in clients’ best interests.