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Financial stocks lead the rally, but the Fed’s next move could cap gains

1 min read
Source: MarketWatch
Financial stocks lead the rally, but the Fed’s next move could cap gains
Photo: MarketWatch
TL;DR

Financial shares have led July’s rally on strong bank earnings and improving capital-market activity, lifting the S&P 500 financial sector and related ETFs, but the pace may hinge on the Fed’s next move. A September rate decision and the trajectory of the yield curve could affect banks’ net interest margins and loan demand, potentially capping further gains even as mergers, IPOs, and dividends support the sector.

Topics:businessmarkets#bank-earnings#fed#financials#interest-rates#market-rotation#markets
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