Bank stocks log worst one-day slide in more than 3 months

Financial shares on Tuesday registered their worst single-session slump in months as benchmark yields declined amid elevated geopolitical worries swirling in the market. A popular exchange-traded fund used to bet on financial performance, the Financial Select Sector SPDR ETF , closed off 2.1%, marking its steepest one-day slide since May 17, when it fell 3.2%, according to FactSet data. The decline in financials, highlighted by a 3.6% fall in shares of Goldman Sachs Group Inc. , came as the yield for the 10-year benchmark Treasury slipped to its lowest level, around 2.08%, since Nov. 10, just after President Donald Trump was elected. Global unrest centered on rising military tensions between North Korea and the rest of the globe after the Hermit Kingdom tested a hydrogen bomb over the weekend has underpinned a flight to assets perceived as safe, like government paper, which has pushed yields to lows. Bond prices and yields move inversely. More broadly, the financial sector was the worst performer among the S&P 500’s 11, off 2.2%. The broad-market gauge closed down 0.8% at 2,457, the Dow Jones Industrial Average ended off 1.1% at 21,753, with Goldman’s shares exacting the biggest toll on the price-weighted benchmark, about 55 points. The Nasdaq Composite Index closed 0.9% lower at 6,375.

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From:: Stock Market News

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