Financial ETF jumps, nearly turns positive for 2018

The largest exchange-traded fund to track the financial sector jumped on Thursday, extending a recent upswing for the fund. The Financial Select Sector SPDR ETF
XLF, +1.97%
rose 1.8% and was on track for its biggest one-day percentage gain since March 26. The ETF has risen in nine of the past 13 sessions, according to FactSet data, a move that was nearly enough to return it to positive territory for the year. The fund remains down less than 0.1% for 2018. Financial stocks were the biggest gainers on the day on Thursday, a session when stocks rose broadly on signs that geopolitical tensions were fading. The sector was also supported by strong results at BlackRock Inc.
BLK, +2.84%
which rose 2.5%. BlackRock’s results will be followed by releases by other major financial firms like JPMorgan Chase & Co.
JPM, +2.59%
in coming sessions. Shares of JPMorgan rose 2.4% while Citigroup Inc.
C, +2.76%
was up 2.5% and Bank of America
BAC, +2.49%
rose 2.3%. Goldman Sachs
GS, +2.48%
was up 2.5% while Morgan Stanley
MS, +2.26%
rose 2%. The SPDR S&P Bank ETF
KBE, +1.92%
rose 1.7% on the day while the SPDR S&P Regional Banking ETF
KRE, +1.91%
was up 1.7%. The healthy advance for financial firms also comes as the yield for the benchmark 10-year Treasury note
TMUBMUSD10Y, +1.92%
rose to 2.82% from 2.79% on Wednesday, following minutes from the Federal Reserve that implied that it was on a path of aggressive monetary tightening. Rising yields tend to be bullish for banks’s business models. Bond prices and yields move inversely. The Dow Jones Industrial Average
DJIA, +1.47%
rose 1.3% while the S&P 500
SPX, +1.07%
was up 1% and the Nasdaq Composite Index
COMP, +1.19%
was up 1.2%.

Quote References XLF +0.54 +1.97% BLK +14.90 +2.84% JPM +2.87 +2.59% C +1.93 +2.76% BAC +0.75 +2.49% GS +6.28 +2.48% MS +1.19 +2.26% KBE +0.91 +1.92% KRE +1.15 +1.91% TMUBMUSD10Y +0.05 +1.92% DJIA +356.36 +1.47% SPX +28.20 +1.07% COMP +84.25 +1.19% Show all references
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