Financials Up As Investors Buy Risky Assets -- Financials Roundup
|06/30/2020 | 05:24 pm|
Shares of banks and other lenders and money managers rose as investors continued to take on financial risk.
In an improbable turnaround, Tuesday closed out the strongest quarterly gain for the broad stock market since 1998 as stocks came roaring back from the bear-market lows of March. "It's been an incredible bounceback quarter for stock markets, building on the recovery that started in the final week of March, as central banks and governments around the world launched enormous stimulus programs in order to prevent a catastrophic economic collapse," said Craig Erlam, senior market analyst at the European unit of foreign-exchange brokerage OANDA, in a note to clients.
Financials initially led the rebound, but the Federal Reserve's aggressive efforts to lower interest rates have crimped profit potential for the sector, capping gains recently. The SPDR Financial Select Sector exchange-traded fund, which tracks the financial sector of the Standard & Poor's 500, has still risen about 30% from its lows of the year, but has still not recouped half of the losses incurred after its February peak.
Eileen Murray, the former co-chief executive of hedge-fund giant Bridgewater Associates, is set to take over leadership of Wall Street's self-policing organization, the Financial Industry Regulatory Authority.
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