Citigroup’s stock jumps 1.5% premarket after WSJ report that activist investor has built a $1.2 bln stake

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Financials gain as 10-year Treasury yield hits 3%

Financial stocks rose on Tuesday, hitting session highs in early trading after the 10-year Treasury note yield rose past a psychological level, in what is seen as providing a tailwind for the sector. The Financial Select Sector SPDR ETF rose 0.7%, with financial stocks the top-performing industry group of the day. The SPDR S&P Bank ETF rose 1.2% while the SPDR S&P Regional Banking ETF . Regional banks were among the biggest gainers of the day, with Fifth Third Bancorp up 5.8% and Zions Bancorp up 4.2%. Multinational firms like JPMorgan Chase & Co. and Citigroup Inc. were up 1.5%. The rise came as the U.S. 10 Year Treasury Note [BX:TMUBMUSD10Y] rose 2.8 basis points to 3%, hitting its highest level since 2014. While higher yields are generally seen as a headwind for stocks overall, it can provide a boost to banks by contributing to a lift in their net interest margins, which can in turn lead to higher earnings. The Dow Jones Industrial Average rose 0.2% while the S&P 500 was up 0.2% and the Nasdaq Composite Index was up 0.1%.

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