Banks push Dow to new record, technology shares tumble

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(Bloomberg) -- U.S. stocks were mixed as a rally in banks took the Dow to a fresh record, while technology shares tumbled. The dollar strengthened as factory data bolstered optimism in the strength of the American economy.

Energy and financial shares lifted the S&P 500, though the measure erased more than half of its gain in the final hour of trading. The Dow rose as much as 243 points to an intraday record before closing higher by 130 points. The Nasdaq 100 dropped 0.9 percent. Markets closed at 1 p.m. ahead of the July 4 holiday. The dollar strengthened the most in two weeks after American factories powered up in June at the fastest pace in nearly three years. Crude climbed after industry data Friday showed active U.S. rigs declined for the first time in 24 weeks.

Trading volumes in many markets were light before the Fourth of July and as investors await Friday’s report on the American jobs market. Economic data may provide a key insight for traders in the wake of a hawkish shift from central banks that roiled markets last week.

Meanwhile in Japan, the ruling party lost to an upstart outfit in an election for Tokyo’s assembly, presenting Prime Minister Shinzo Abe with one of his biggest tests since coming to power in late 2012. The Yen reversed an advance.

Here are some of the main moves in markets:

• The S&P advanced 0.2 percent to 2,429.02 as of 1 p.m. in New York. The gauge rose 0.2% on Friday to round out its worst week since April.
• The Stoxx Europe 600 Index increased 1.1%, with miners and energy companies rising.
• MSCI’s emerging-market index added 0.2%

• The yield on 10-year Treasuries rose four basis points to 2.33% after surging 16 basis points last week.

• The Bloomberg Dollar Spot Index rose 0.5% after dropping 1% last week and touching the lowest level since October.
• The pound fell 0.4% to $1.2969 after an eight-day rally.
• The euro slipped 0.5% to $1.1365.

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