Shares of banks and other financial institutions were flat as Treasury yields sold off, causing investors to rotate back into the tech sector.
Financials had emerged as a stock market leader in recent weeks as the rise in Treasury yields, a positive for bank profitability, incentivized a rotation into the sector from the tech sector, which was seen as threatened by the increase in rates.
The yield on the 10-year Treasury fell to a two-week low after Federal Reserve Chairman Jerome Powell reiterated his conviction that inflation would remain under control, allowing the Fed to maintain its accommodative monetary policy for the foreseeable future.
Credit Suisse's recent stumbles, where it was damaged by both the failure of British commercial lender Greensill Capital and the collapse of family office Archegos Capital, hint at widespread issues with its risk controls, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-08-21 1720ET
