Banks stocks rally to buck broader market selloff after Fed to allow share buybacks again

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Bank stocks are showing green in sea of red in premarket trading Monday, after the Federal Reserve said late Friday it will allow big banks to start buying back stock again, restrictions which were put in place in June amid concerns over the impact of the COVID-19 pandemic. The Fed said the latest stress tests confirmed that the big banks were in good financial health despite the recession. The SPDR Financial Select Sector ETF rallied 0.7% in premarket trading. Among some of the ETF’s most heavily weighted banking components, shares of J.P. Morgan Chase & Co. rallied 3.6%, Bank of America Corp. got a 2.9% boost, Citigroup Inc. climbed 3.0%, Wells Fargo & Co. advanced 1.3% and Goldman Sachs Group Inc. gained 2.8%. The rallies come while futures for the Dow Jones Industrial Average tumbled 442 points, or 1.5%, amid concerns over a new viral strain of coronavirus that causes COVID-19.
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