US stocks climb after the Fed’s rate hike
US stocks climbed higher after the Federal Reserve decided to raise interest rates yesterday. The SPDR S&P 500 ETF (SPY) rose 1.4% in yesterday’s trade. The Financial Select Sector SPDR Fund (XLF), which serves as a barometer for US financial stocks, rose 1.6% to close at $24.44. The Vanguard Financials ETF (VFH) and the iShares U.S. Financials ETF (IYF) rose 1.5% and 1.6%, respectively, on the day.
On average, all subgroups within XLF rose yesterday, with the highest gains coming from REITs, followed by banks and diversified financial services stocks. REITs within XLF rose 2.1%, while banking stocks rose 1.7%. Diversified financial services stocks within XLF rose an average of 1.6%. The SPDR S&P Regional Banking ETF (KRE) rose 0.99%, and the SPDR S&P Bank ETF (KBE) rose 0.96%.
Most of the stocks within XLF, which seeks to replicate the performance of the Financial Select Sector Index, rose yesterday. Of the 87 stocks in the portfolio, 84 closed the day in green. Stocks that gained the most were Genworth Financial (GNW), Affiliated Mangers Group (AMG), and Legg Mason (LM). They rose 5.0%, 4.5%, and 4.0%, respectively, during the day. Meanwhile, the stocks that underperformed were Leucadia National Corporation, Intercontinental Exchange, and Hudson City Bancorp, which fell 2.8%, 0.9%, and 0.7%, respectively.