SVB Financial stock price target raised to $375 from $345 at J.P. Morgan

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Financial stocks take a broad beating as Treasury yields, Dow sell off

Financial stocks took a broad beating Tuesday, as a drop in longer-term Treasury yields and a stock-market selloff weighed took its toll. The SPDR Financial Select Sector exchange-traded fund dropped 2.4% in afternoon trade, with all 68 of its equity components contributing to losses. Among the most heavily weighed components, shares of Warren Buffett’s Berkshire Hathaway Inc. fell 2.3%, J.P. Morgan Chase & Co. gave up 2.7% and Bank of America Corp. dropped 3.7%. The biggest losers were shares of SVB Financial Group , which slumped 4.8%, and KeyCorp.’s stock , which slid 4.2%. Falling longer-term Treasury yields–the 10-year yield was down 5.7 basis points toward a seven-week low of 2.786%–can hurt banks’ profits is the spread made between rates tied to longer-term assets, like loans, and shorter-term liabilities narrow. In addition, the Dow Jones Industrial Average tumbled 382 points, or 1.2%, with 25 of 30 components losing ground.

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