Financial stocks enjoyed a broad rally Monday, after President Trump's declaration that he would not impose tariffs on imports from Mexico helped push up Treasury yields (Goldman Sachs Group Inc. (GS) gained 2.5% to pace the Dow Jones Industrial Average's gainers, while J.P. Morgan Chase & Co.'s stock (JPM) was in second with a 1.5% rise. Elsewhere, shares of Citigroup Inc. (C) jumped 2.6% to pace the financial ETF's gainers, Bank of America Corp. (BAC) hiked up 2.4% and Wells Fargo & Co. (WFC) advanced 1.4%. The Dow gained 148 points, or 0.6%, and the yield on the 10-year Treasury note rose 4.5 basis points to 2.129%. Higher longer-term yields can help boost bank profits, as the spread between what banks earn on longer-term assets, such as loans, the cost of shorter-term liabilities used to fund those assets widens.) and spark a broader stock market rally. The SPDR Financial Select Sector ETF (XLF) jumped 1.1%, with 63 of 67 components trading higher. Among the more heavily weighted components, shares of
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 10, 2019 09:52 ET (13:52 GMT)
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