Banks, lenders and other financial companies fell, but not by as much as the broad market, amid elevated expectations for a rate increase in December.
At a public appearance Monday, Federal Reserve Bank of New York President William Dudley said the economy is likely to continue growing, allowing the central bank to continue raising rates.
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Higher interest rates should boost net interest margin -- or lending profits -- for conventional banks, said Scott Clemons, chief investment strategist at Brown Brothers Harriman.
Hopes that other styles of financial firms will benefit from deregulation are less justified, he added. "If the expectation of regulatory relief and the unwinding of Dodd Frank or the unwinding of the Volcker rule -- if that expectation is part of your investment case for a sector or a stock -- I would be wary," said Mr. Clemons, noting that other legislative overhauls have stalled for the current presidential administration.
A wave of deal making in the payment-technology field continued. A consortium led by U.S. buyout firm Hellman & Friedman agreed to buy Denmark's Nets A/S for about $5.3 billion.
Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
September 25, 2017 17:10 ET (21:10 GMT)