Shares of banks and other financial institutions rose, testing all-time highs ahead of earnings.

The SPDR Select Sector Financial exchange-traded fund, which tracks the financial industry group of the S&P 500, rose 0.7% and is now up by roughly 12% for the year to date. The likelihood that interest rates will decline but remain somewhat elevated based on long-term trends is seen as favorable for stock and bond markets, and hence for banks and money managers.

Nevertheless, analysts are awaiting to see if a down-tick in bond yields weighed on loan profit margins for the second quarter when JPMorgan Chase and Wells Fargo kick off earnings season Friday.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

07-11-24 1758ET