🏦 Financials Weigh on Markets as Shutdown Fears Hit XLF and Regional Banks | Financials Sector Insight
(XLF) fell 0.8% Tuesday, dragged down by Bank of America, American Express, and Capital One amid budget gridlock in Congress and new tariff concerns. (KRE) slipped 1.1%, trading below its 50-day moving average as shutdown risks and soft labor market data weighed on sentiment.
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Below are AI-generated insights on moves in the financials sector, powered by MarketReader technology.
Tuesday, September 30
XLF [-0.8%]
Financial Select Sector SPDR Fund
The Financial Select Sector SPDR Fund (XLF) has experienced a decline of approximately 0.8% during Tuesday's trading session. The broader financial sector has underperformed, dropping by 0.34%, in contrast to stronger performances in Health Care, Technology, and Materials. Concerns regarding a potential U.S. government shutdown have emerged as Congress struggles to pass a budget, raising fears of delays in economic data releases that could significantly affect financial markets. Additionally, President Trump's new tariffs on softwood lumber imports may further dampen sentiment within construction-related sectors that are vital to XLF's portfolio. Notable movements among the ETF's holdings include Bank of America, American Express, and Capital One Financial Corp, each contributing negatively to the fund's performance. The JOLTs Job Openings report showed a slight increase, while Job Quits data fell to a nine-month low, reflecting ongoing volatility in the financial sector.