The Globe and Mail reports in its Friday edition that U.S. and Canadian stocks ended firmer on Thursday, with the Dow notching its second straight record-high close. A Reuters dispatch to The Globe says that interest-rate-sensitive banking stocks rallied in Toronto on bets that an expected drop in borrowing costs next year would boost credit growth and revive the housing market. Investors were closely watching U.S. 10-year Treasury yields, which broke below 4 per cent for the first time since early August in the wake of Wednesday's dovish U.S. Federal Reserve statement. They fell further on Thursday, to 3.9 per cent. Canadian bond yields were also lower across the curve, with the closely watched five-year yield down six basis points to its lowest since May. The U.S. Federal Reserve's guidance on Wednesday that borrowing costs are expected to come down next year has turned the market sentiment globally, with investors piling into beaten down stocks. "We're now entering the Santa Claus rally," said Brandon Michael at ABC Funds. "The market is now carrying significant momentum." The S&P/TSX composite rose 149.35 points at 20,778.80, its highest close since June 8, 2022. Energy led gains as crude oil prices moved higher.