Hi there! Today, let's talk about the impact of rising Treasury yields on bank stocks. Bank stocks have had a tough year due to concerns about deposit outflows and money-losing bond portfolios. However, there seems to be a positive shift in momentum for stocks like Bank of America.
Bank of America and Bank of New York Mellon recently reported solid earnings, and U.S. Bancorp led the way with a 7% gain after revealing that it wouldn't have to meet a stricter regulatory standard for now. The KBW Nasdaq Bank index gained 1.7%.
Despite the positive performance of bank stocks, the broader market couldn't withstand another jump in bond yields. The 10-year Treasury note settled at its highest closing level since 2007. The S&P 500 index was slightly down, and the Nasdaq Composite index shed 0.3%. The Dow Jones Industrial Average had a small gain.
Moderna, a vaccine maker, continued to face challenges due to concerns about the outlook for Covid-19 vaccines. On the other hand, Pfizer, another vaccine maker, saw its stock rise following a decision to undertake a cost-cutting program.
Overall, it's an interesting time for bank stocks and the impact of rising Treasury yields. Stay tuned for more updates!
Comments
Post a Comment