Market Insider

Thank one group of companies for the stock market's climb to record highs

Analyst: Banks will continue to outpeform until end of next year

The stock market's dramatic surge to record highs can largely be attributed to the leap in bank stocks.

Without the sector, the S&P 500 would not have closed at a record Thursday, but would still be only 0.25 percent below the old record it hit Aug. 15, according to Howard Silverblatt of S&P Dow Jones Indices. Meanwhile, his data shows that Goldman Sachs has accounted for nearly a third of the Dow Jones industrial average's gains since the election.

There's been a "total turnaround in the financials, and a lot of it is perception about what could be done" under President-elect Donald Trump, Silverblatt said.