10-year yield at 2.849%; 2-year yield at 2.578%; 30-year yield at 2.949%

1 News Net

1 News - 1 Movies - 1 Music - 1 eBooks - 1 Search

 

Financial stocks poised for best day in a month

Financial stocks were on track for their best day in about a month on Monday, supported by recent economic data, as well as a rise in bond yields. The Financial Select Sector SPDR Fund , an exchange-traded fund that is one of the most popular investment vehicles for investors to get exposure to the sector, gained 1.6%. Monday is on track to be its biggest one-day percentage gain since June 6, as well as its third straight daily gain. The sector has been struggling of late, and recently dropped for 13 straight trading days, its longest-ever losing streak. Among notable components, JPMorgan Chase & Co. rose 2.6%, on track for its best session since March 26. Citigroup Inc. popped 2.3% and was set for its best day since May 8. Goldman Sachs Group Inc. gained 2.1%, its best session since April 12. The day’s advance came as bond yields rose; the yield on the 10-year U.S. Treasury note was up 3.6 basis points to 2.86%. The rise is a positive for banks that borrow on a short-term basis and lend on a longer-term basis; recently, investors have been concerned that falling yields could result in an inversion of the yield curve. Banks were also supported by recent data showing strength in the labor market, a positive sign for broad economic growth that contributed to a general uptrend in equities on Monday. The Dow Jones Industrial Average rose 1.1% while the S&P 500 was up 0.6% and the Nasdaq Composite Index rose 0.4%.

1 News Net

1 News - 1 Movies - 1 Music - 1 eBooks - 1 Search

 

Leave a Reply