BUZZ-US big banks edge down after Fed rate hike
XLF•Market reaction commentary
"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," says Brian Jacobsen, chief economic strategist of Annex Wealth Management.
He adds: "Warsh not only read the markets, but he read the room, supporting a rate hike. That’s why we can get a relatively muted response from the markets despite the change in course."
Big U.S. banks fall after Fed rate hike
Shares of big U.S. banks fall in the afternoon session after the Federal Reserve raises interest rates and flags further increases in the coming months.
The Fed lifts its benchmark interest rate to the 3.75%-4.00% range.
Higher interest rates can weigh on banks by curbing loan demand and increasing the risk of credit losses if economic growth slows.
Goldman Sachs $GS drops 1%, JPMorgan Chase $JPM loses 0.7%, Wells Fargo $WFC is down 2%; Bank of America $BAC falls 2.4%, Citigroup $C dips 1% and Morgan Stanley $MS shares hover around the flatline.
