Financials Edge Higher amid Decelerating Markets
Markets seem edgy
Last week, US markets ended on a sour note. The S&P 500 Index (SPX-INDEX) (SPY) and the Dow Jones Industrial Average (DJI-INDEX) (DIA) fell 0.13% and 0.27%, respectively. On the other hand, the technology-heavy NASDAQ Composite (COMP-INDEX) (QQQ) rose 0.47%. The markets fell due to concerns regarding the fate of the tax overhaul plan. A Reuters poll showed that nearly two-thirds of economists out of the 60 that were polled aren’t confident about the legislation getting passed this year.
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Mixed week for financials
It was a mixed week for the financial sector—the S&P 500 financial index rose 0.25%. Bank of America (BAC), JPMorgan Chase (JPM), and U.S. Bancorp (USB) were some of the biggest gainers. On the other hand, Citibank (C) and Goldman Sachs (GS) fell 1.3% and 0.89%, respectively. The financial ETFs like the Vanguard Financials ETF (VFH) and the Financial Select Sector SPDR ETF (XLF) rose 0.55% and 0.31%, respectively.
The S&P Insurance Select Industry Index (SPSIINS) fell 0.80%, while AIG (AIG) fell 3.2%. Moody’s expects AIG’s new management to take a few years to create a stronger business.