Why US Stocks Rose Modestly after Yellen’s Speech
Yellen silent on monetary policy
US stocks rose modestly last week after the Federal Reserve Chair Janet Yellen remained silent about future interest rate hikes, which sent US. Treasury yields lower. The broader S&P 500 Index (SPX-INDEX) was up 0.72% while the S&P Financial Sector Index gained 0.74% and the S&P Insurance Select Industry Index (SPSIINS) rose 0.16%.
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In the banking space, Citibank (C), JPMorgan Chase (JPM), Morgan Stanley (MS), and U.S. Bancorp (USB) were the major gainers with rises of 1.91%, 1.27%, 1.21%, and 0.75%, respectively. Among the financial ETFs, the SPDR S&P Regional Bank ETF (KRE) was up 1.95% while the SPDR S&P Bank ETF (KBE) and the Financial Select Sector SPDR ETF (XLF) rose 1.79% and 0.77%, respectively.
AIG looking to sell a $2 billion portfolio
American International Group (AIG), the largest commercial insurer in the United States and Canada, is planning to sell a $2 billion life settlements portfolio. AIG is working with Goldman Sachs (GS) to find a buyer. In the past, Blackstone Group (BX) had purchased similar death benefit packages from AIG.