Bank stocks and industrials surged on Thursday while Apple and other technology shares sank as Wall Street rearranged its bets to benefit from Donald Trump`s presidency.
The S&P 500 financial sector <.SPSY> surged 4 percent to its highest level since the 2008 financial crisis, bringing its gain since Trump`s surprise victory in Tuesday`s election to 8.1 percent. That put it on track for its biggest two-day gain since 2011.
Wells Fargo & Co jumped 7.6 percent, JPMorgan Chase rallied 4.66 percent and Bank of America surged 5.34 percent, also helped by a rise bond yields that are the result of expectations of inflationary spending by Trump.
Trump has also sided with leading conservatives in calling for the repeal of the 2010 Dodd-Frank Financial Reform Act largely opposed by banks.
"The Trump campaign did say it would repeal Dodd-Frank. Rates are higher and the yield curve is steeper. Those are all good things for the banks," said Warren West, principal at Greentree Brokerage Services in Philadelphia.
Apple dropped 2 percent while Amazon.com fell 3.65 percent and the S&P 500 technology index <.SPLRCT> fell 1.1 percent.
At 2:28 pm ET, the Dow Jones industrial average <.DJI> was up 1.39 percent at 18,847.8 points and the S&P 500 <.SPX> had gained 0.49 percent to 2,173.84.
The Nasdaq Composite <.IXIC> dropped 0.43 percent to 5,228.41.
High-dividend sectors utilities <.SPLRCU>, telecom services <.SPLRCL> and consumer staples <.SPLRCS> sold off as bond yields rose due to expectations of higher interest rates.
The market got a lift after St. Louis Federal Reserve President James Bullard said the Republican sweep of the White House and Congress could break the current gridlock over national policy in a potential boon to the U.S. economy.
Industrials <.SPLRCI> trailed the financials with a 2.15 percent advance.
Macy`s rose 5.9 percent after the department store operator raised its full-year sales forecast and announced a partnership to monetize some of its real-estate assets.
Walt Disney and Nordstrom were expected to report earnings after the market closes.
Declining issues outnumbered advancing ones on the NYSE by a 1.02-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored advancers.
The S&P 500 posted 82 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 320 new highs and 40 new lows.