Technology companies led US stocks modestly higher today, driving the market to another set of milestones.

The Federal Reserve’s annual stress tests found 29 of the 30 largest US banks could withstand a deep recession and still pay dividends, fuelling speculation about which firms will win approval next week to raise payouts.

Wall Street finished higher in an uneasy session today as retail and homebuilders stocks rose on expectations for more interest rate cuts, but banks and insurers fell on worries about further mortgage debt troubles.