Financial stocks were broadly higher in afternoon trade Tuesday, boosted by a sharp bounce in Treasury yields. The SPDR Financial Select Sector ETF (XLF) rallied 2.3%, with 65 of 67 equity components trading higher, to outperform the S&P 500 , which gained 1.7%. The biggest gainer was Charles Schwab Corp.'s stock (SCHW), which surged 5.2%. Among other more-active components, shares of Bank of America Corp. (BAC) climbed 4.3%, Citigroup Inc. (C) rallied 4.6%, Wells Fargo & Co. (WFC) rose 2.5%, J.P. Morgan Chase & Co. (JPM) gained 2.7% and Regions Financial Corp. (RF) advanced 1.9%. The yield on the 10-year Treasury note ( ) jumped 4.5 basis points to 2.126%, after closing Monday at a near 2-year low. Banks often benefit from a rise in longer-term interest rates, as it allows them to earn more spread between what they make on their longer-term assets, like loans, and the shorter-term liabilities.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 04, 2019 15:01 ET (19:01 GMT)
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