Big banks extend slide after Fed rate hike, Warsh presser
XLF•Big banks extend slide after Fed rate hike
Shares of big U.S. banks extend slide after Federal Reserve raises interest rates and flags further increases in the coming months
JPMorgan Chase (JPM.N) is down 1.5%, Wells Fargo (WFC.N) slips 3.5%, Bank of America (BAC.N) falls 3.5%, Citigroup (C.N) is down 3.2%, Morgan Stanley (MS.N) slips 2.2%, and Goldman Sachs (GS.N) slips 4%.
The S&P 500 Banks index (.SPXBK) slides 2.9%, while the S&P 500 Financials sector (.SPSY) is down 2.1%.
U.S. stocks extend losses after Warsh press conference
U.S. stocks also extended their losses after new U.S. central bank chief Kevin Warsh's press conference.
Higher interest rates can weigh on banks by curbing loan demand and increasing the risk of credit losses if economic growth slows.
"I wouldn’t bank on another hike this year. Yes, the median dot shows another hike this year, but a lot can change between now and then," said Brian Jacobsen, chief economic strategist of Annex Wealth Management.
