What tech leadership?

In a market that's become accustomed to technology stocks leading gains, the banking sector is gunning to replace Silicon Valley in the top spot this week. Financial stocks have surged the last few sessions, sending the sector ahead with strong momentum.

The KBW Nasdaq Bank Index jumped 2.07% by the market close on Wednesday, June 6, to tally its second-largest single-day gain in more than a month. This week's gains, which have sent the index higher by 2.87% in the last five sessions, represent a significant turnaround from the space's recent performance. The index remains in the red by 3.62% over the last three months.

The turnaround in banking stocks came as the benchmark 10-year Treasury yield reversed direction. After sinking in late May, the 10-year yield has gained about 20 basis points in the last week to yield 2.99% early Thursday.

The Financial Select Sector SPDR ETF (XLF) climbed 1.86% on Wednesday trading and rose 0.39% in premarket trading Thursday. Among the fund's major holdings, JPMorgan Chase & Co. (JPM) gained 2.34% on Wednesday, Berkshire Hathaway Inc. (BRK.B) gained 1.69%, Bank of America Corp. (BAC) gained 3.16%, Wells Fargo & Co. (WFC)  rose 1.98% and Citigroup Inc. (C) gained 2.2%. All were higher in premarket trading Thursday as well.

This stock market has become used to large market-cap tech names including Facebook Inc. (FB) , Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) leading gains. While the sector rose on Wednesday , the 0.65% gain on the SPDR Technology Select Sector ETF (XLK) wasn't enough to catch bank stocks.

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JPMorgan, Citigroup, Facebook, Amazon and Apple are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.

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