The financial sector jumped 3.6 percent on Friday as investors celebrated the U.S. Senate’s approval of financial reform legislation. The bill received an approval vote of 59-39, marking the first major step for the legislation after several months of debate.
Banking stocks and the like jumped on the news. JP Morgan Chase (NYSE: JPM) was a leader, adding 5.9 percent to close at $40.05 a share on Friday. Bank of America (NYSE: BAC) was also strong, rising 4.5 percent on the session to finish at $15.99 a share.
Goldman Sachs (NYSE: GS) joined in the rally, adding 3.3 percent to finish at $140.62 a share, while shares of Citigroup (NYSE: C) also rose 3.3 percent to close at $3.75 a share.
The version of the bill that was approved will probably not pressure earnings at financial institutions as many of the controversial money making practices were left out of the bill. A stronger ban on banks trading their own accounts, widely debated between political parties, was not included in the bill.
The bill still needs to be voted on by the U.S. House of Representatives, and may still see some changes during that process.