Triple-threat Thursday is one for the books, but Wall Street has already turned its attention to a potential rate hike from the Federal Reserve in the coming week.
The S&P 500 was up 0.42%, the Dow Jones Industrial Average gained 0.45%, and the Nasdaq rose 0.3%, setting an intraday record.
A June rate hike has been highly expected over the past several weeks with comments from Fed members suggesting there were more hawks than doves. Members have pointed to a tightening job market, the risk of being behind the curve on inflation, and a generally healthy economic recovery.
The Federal Open Market Committee, the monetary policy arm of the central bank, is next set to meet June 13-14. Markets already have high expectations for an interest-rate increase at the committee's next meeting, the second of three expected hikes this year. Wall Street is incredibly confident in a June rate hike -- CME Group fed funds futures have priced in a more than 99% chance of a 25-basis-point increase.
"We would think it's unlikely that the Fed would throw in a surprise to the market and not move interest rates," Mark Heppenstall, CIO at Penn Mutual Asset Management, said in a phone call. "I think there would be the potential for "what do they know that we don't know" type of mindset among investors if they weren't to deliver on their tightening."
Banking stocks performed well on Friday on anticipation for a rate hike next week. JPMorgan (JPM) , Wells Fargo (WFC) , Bank of America (BAC) , Citigroup (C) and Royal Bank of Canada (RY) moved higher, while the Financial Select Sector SPDR ETF (XLF) rose 1.5%.