Financial stocks fell sharply early Tuesday, as the global selloff in stocks (http://www.marketwatch.com/story/us-stock-futures-point-to-continued-losses-for-wall-street-2018-10-23) sent investors into safe-haven Treasurys, pushing yields lower. The SPDR Financial Select Sector ETF (XLF) dropped 1.6% toward a 13-month low in premarket trade. Among the ETF's (XLF) heavyweights, shares of J.P. Morgan Chase & Co. (JPM) shed 1.8%, Bank of America Corp. (BAC) declined 2.8%, Citigroup Inc. (C) lost 1.8%, Goldman Sachs Group Inc. (GS) gave up 1.8% and Wells Fargo & Co. (WFC) slumped 1.5%. Meanwhile, the yield on the 10-year Treasury note declined 5.7 basis points to 3.139%. Lower long-term interest rates can pressure bank earnings, as it narrows the spread between what makes earn on longer-term assets, such as loans, and what they pay on shorter-term liabilities. The XLF, on track to open at the lowest level seen during regular session hours since September 2017, has lost 6.6% over the past three months, while the S&P 500 has slipped 1.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 23, 2018 08:52 ET (12:52 GMT)
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