Bank Stocks Pull Back Sharply

Bank stocks dropped Monday, as weakness in the broader market and declines in Treasury yields prompted a pullback from the recent record run. Among the sector heavyweights, shares of Bank of America Corp. slumped 1.1% in active premarket trade. The stock had rocketed 23% since the election to close Friday at an eight-year high. Elsewhere, Citigroup Inc.'s stock shed 1.3%, shares of Wells Fargo & Co. slid 1% and Goldman Sachs Group Inc. shares lost 0.7%. The SPDR Financial Select Sector ETF fell 0.4%, after closing Friday at an 8 1/2-year high. The XLF has run up 12% since the election through Friday, while the Dow has climbed 4.5% to a record high. Dow futures were down over 60 points ahead of the open, while U.S. bond futures gained 0.4%, meaning yields fell. Lower long-term interest rates narrows the spread between what banks earn by funding longer-term loans with shorter-term liabilities.