🏦 Goldman Sachs and Morgan Stanley Slide Amid Sector Shakeups, While KKR Faces Fierce Competition in Japan | Financials Sector Insight
The ISM Manufacturing PMI reported a slight increase but remained below expectations, indicating ongoing contraction in U.S. factory activity. This data typically results in a pronounced reaction in the financial sector. Meanwhile, the ETF is currently outperforming other sectors like Technology.
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Below are AI-generated insights on moves in the financials sector, powered by MarketReader technology.
Tuesday, September 3
XLF [-0.6%]
The Financial Select Sector SPDR Fund (XLF) has seen a decline of 0.5% since Friday. Key holdings have contributed to this performance, with notable drops from JPMorgan Chase, Goldman Sachs, and Morgan Stanley. JPMorgan announced a leadership promotion and faced analyst downgrades, while Goldman Sachs suspended zinc market coverage amid leadership changes in its commodities division. Additionally, Berkshire Hathaway divested shares of Bank of America, which has revised its global GDP growth forecast downward. The ISM Manufacturing PMI reported a slight increase but remained below expectations, indicating ongoing contraction in U.S. factory activity. This data typically results in a pronounced reaction in the financial sector. Meanwhile, the ETF is currently outperforming other sectors like Technology, despite being overshadowed by semiconductor ETFs. Recent analyses suggest a shift in focus towards underlying market strength rather than high-inflation narratives.