Banks and other financial companies made big gains Friday after President Trump moved to scale back regulations on the financial industry. Other stocks also rose as investors were pleased that employers hired workers at a faster pace in January.
The Labor Department said hiring sped up last month, a positive sign for the economy. Small-company stocks, which stand to benefit more than others from stronger economic growth, made sharp gains.
Financial companies are “going to benefit from not having all of this onerous red tape,” said Karyn Cavanaugh of Voya Investment Strategies. “That’s why we see the rallies every time they talk about regulation.”
Cavanaugh said a...