Financial ETFs slide on JPMorgan fine, fizzling rotation

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Financial-sector exchange-traded funds were on the back foot Tuesday, one day after notching their best session since July. The Financial Select Sector SPDR Fund slipped 1.3% while the Invesco KWB Bank ETF was 1.9% lower. JPMorgan Chase & Co. , which makes up 11% of the Sector SPDR fund and 8% of the Invesco fund, was 1.5% lower after a regulator announced the bank would pay $920 million to resolve allegations of manipulating markets. But other bank stocks fell more sharply: Wells Fargo & Co. lost 2.3%, and Citigroup Inc. shares were down 2.8%. Throughout 2020, investors have anticipated a stronger economic rebound and “rotated” exposure to sectors like financials that haven’t appreciated as much as high-flyers like technology, only to rotate back shortly after.
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