ADP Inc.

Banks and energy companies lead stocks higher

Banks and energy companies lead stocks higher

The stock market broke a two-day losing streak Wednesday, posting solid gains as investors piled into banks and energy companies.

Stocks jumped from the start on a rise in the price of crude oil, with banks joining the rally after a strong report on the service sector suggested the Federal Reserve may raise interest rates soon. Banks can benefit when rates rise because it enables them to charge more for their loans. Bank of America rose 2%.

The yield on government bonds rose again, and investors dumped shares of phone and real estate companies, sending them down nearly 2%. Investors find those companies less attractive as a source of income relative to bonds when bond yields...