Financial stocks took a broad beating Tuesday, as Treasury yields dropped (Bank of America Corp. (BAC) sank 2.3%, Citigroup Inc. (C) shed 2.6%, J.P. Morgan Chase & Co. (JPM) gave up 2.1%, Wells Fargo & Co. (WFC) slid 1.9% and Charles Schwab Corp. (SCHW) declined 1.3%. Meanwhile, the yield on the 10-year Treasury note fell 4.1 basis points to a 5-week low of 1.514%, after the Trump administration blacklisted several China-based technology companies, Bloomberg reported ( ) that the administration was discussing possible restrictions on capital flows into China and the South China Morning Post reported ( ) that the China delegation to Washington later this week has cut its stay short by a night. Falling Treasury yields can hurt bank profits, as it can reduce the spread banks earn by funding longer-term assets, like loans, with shorter-term liabilities. The financial ETF has lost over 4% over the past three months, while the S&P 500 has eased 2.3%.) amid growing concerns that U.S.-China trade talks could break down before they get started. The SPDR Financial Select Sector ETF (XLF) shed 1.8% in morning trading, and was the weakest ETF tracking the S&P 500's 11 key sectors, with all 67 components trading lower. Among the most active members, shares of
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 08, 2019 11:05 ET (15:05 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.