Big bank stocks extend gains after Fed rate hike

Discussion in 'Market News' started by sniper-academy, Jun 14, 2018.

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  1. sniper-academy

    sniper-academy Administrator Staff Member

    Sep 30, 2011
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    Financial stocks added to gains in afternoon trade Wednesday, after the Federal Reserve nudged up its target range for the fed funds rate by 0.25 percentage points (25 basis points) to 1.75% to 2.00%, as widely expected. The SPDR Financial Select Sector ETF rose 0.4% after the rate hike, after being up less than 0.1% just before the move. Among shares of the financial ETF's (XLF) most heavily weighted components, J.P. Morgan Chase & Co. went to a gain of 0.5% from a gain of 0.1%; Bank of America Corp. rose 0.9%, after being up 0.4% pre-Fed; Citigroup Inc. went to up 0.7% from up 0.3%; Goldman Sachs Group Inc. climbed 1.6%, after being up 1.1% pre-Fed; Wells Fargo & Co.'s stock went up 0.2% to up 0.7%. Higher interest rates can help boost bank profits, as they can increase the spread banks earn between longer-term assets, like loans, and shorter-term liabilities. Meanwhile, the yield on the 10-year Treasury note inched lower to 2.952% from 2.954% and the Dow Jones Industrial Average moved to down 48 points from down 26 points.

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