Russell 2000 rises to the highest since July as bank stocks rally

The Russell 2000 is threatening to break out to the highest since November 2021 as banks lead a broad rally.

The KRE regional bank ETF is up for a fourth straight day and trading above a series of highs from July-Sept to the best levels since February 2023. That’s been driven by better signs on the economy and strong results from major US banks over the past week.

Another source of strength is airlines. United reported earnings late yesterday and shares are up 7.8%.

Finally, utilities are up as Treasury yields tick lower for the fourth day. The utilities sector has been red hot this year as rates come down and the market senses a lack of capacity to meet AI demand.

Technically, a break of the July high would target a return to the all-time highs in 2021, a gain of nearly 8%.

This article was written by Adam Button at www.forexlive.com.