US stocks were largely unchanged
US stocks finished relatively flat last week. President Trump’s latest tariff threats against China and attack on the Fed restricted the gains despite solid earnings growth from leading corporates. The S&P 500 closed the week at 2,801.83, while the Dow Jones Industrial Average rose 0.20% to 25,058.12. The NASDAQ Composite Index fell 0.1% to 7,820.20. The US ten-year Treasury yield rose to 2.89%.
Financials posted solid gains
Even though broader markets remained flat last week, US financials rose due to strong earnings growth from leading banks. The S&P Financials Index rose 2.2% to 457.59, while the S&P Insurance Select Industry Index gained 1.2% to 2,792.36.
Bank of America (BAC), which reported stellar second-quarter earnings last week, rose 5.5%. JPMorgan Chase (JPM) and Morgan Stanley (MS) each rose 4.6%, while Citigroup (C) and Goldman Sachs (GS) rose 3.3% and 2.3%, respectively. The Financial Select Sector SPDR ETF (XLF) and the Vanguard Financials ETF (VFH) rose 2.1% and 2.3%, respectively.