Financial ETFs Tumble As Stock Market Pivots Lower; Led By Goldman

By Mark DeCambre Markets MarketWatch Pulse

Exchange-traded funds that track financials on Tuesday were helping to drag the stock market firmly lower in late-morning trade, with the three main benchmarks shaking off early opening gains. The Financial Select Sector SPDR ETF was off 1.5%, led by nearly losses of at least 3% from Bank of America Corp. , KeyCorp , and Fifth Third Bancorp . The exchange-traded SPDR S&P Bank ETF, which tracks smaller banks, was off nearly 3%, topped by a nearly 5% slide in shares of SVB Financial Group and Bank of the Ozarks Inc. . A 2% tumble in shares of Goldman Sachs Group was cutting more than 30 points from the Dow Jones Industrial Average , which was off about 128 points. Meanwhile, the S&P 500 index was down 0.6% at 2,358 led by financials losses. The Nasdaq Composite Index was down 0.8% at 5,854. The slide came as the yield in the 10-year Treasury note [BX:TMUBMUSD10Y] were at 2.44%. Bond prices and yields move in opposite directions. Lower yields tend to be bad news for banks because it the money they can make from borrowing short-term and lending on a long-term basis.

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