Bank of America, Microsoft Fuel Stock Rally; Treasury ETFs Fall | ETF Trends

Gains of more than 3% in market bellwethers Bank of America (NYSE: BAC) and Microsoft (NasdaqGS: MSFT) helped drive stock exchange traded funds higher Monday, while Treasury ETFs fell sharply as investors sold U.S. government debt.

SPDR S&P 500 ETF (NYSEArca: SPY) was up more than 1% in the final hour of trading as the bulls were firmly in control on Monday, albeit on light trading volume.

The S&P 500 has survived multiple tests of its 200-day moving average over the past week. [ETFs Pass Tests]

Bank of America shares rallied 3%, lifting financial ETFs on Monday after new capital rules for banks were unveiled over the weekend. [Financial ETFs Gain]

The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) jumped 2% as top holding Microsoft tacked on a nearly 5% gain in recent trading.

In bonds, Treasury ETFs traded lower as stocks rallied. The iShares Barclays 20+ Year Treasury Bond Fund (NYSEArca: TLT) shed more than 1%.

Currency markets were also in “risk-on” mode Monday as the euro strengthened against the dollar before an austerity vote in Greece. [Euro ETFs Rise]