Banks stocks hit hard as continued fall in Treasury yields fuel recession fears
Financial stocks traded broadly lower Tuesday, as longer-term Treasury yields continued to fall amid growing concerns that a recession was on the horizon. Lower longer-term yields can weigh on banking profits, as they narrow the spread between what banks earn on longer-term assets, such as loans, that are funded by shorter-term liabilities. The SPDR Financial Select Sector ETF (XLF) slid 1.5% in afternoon trading, with 56 of 66 equity components losing ground, to outpace the S&P 500's 0.9% decline. Among the ETF's more-active components, shares of Bank of America Corp. (BAC) declined 2.4%, Citigroup Inc. (C) shed 1.7%, Wells Fargo & Co. (WFC) dropped 0.9% and JPMorgan Chase & Co. (JPM) gave up 1.5%. The most-active of the gainers was
-Tomi Kilgore
(END) Dow Jones Newswires
July 05, 2022 14:11 ET (18:11 GMT)
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