Sector Update: Financial

BY MT Newswires | TREASURY | 06/20/25 03:40 PM EDT

03:40 PM EDT, 06/20/2025 (MT Newswires) -- Financial stocks were mixed in late Friday afternoon trading with the NYSE Financial Index little changed, erasing earlier gains, and the Financial Select Sector SPDR Fund (XLF) up 0.2%.

The Philadelphia Housing Index added 1.1%, and the Real Estate Select Sector SPDR Fund (XLRE) edged up 0.1%.

Bitcoin (BTC-USD) declined 1.4% to $103,256, and the yield for 10-year US Treasuries decreased 2.2 basis points to 4.375%.

President Donald Trump will decide on a potential military action against Iran within the next two weeks, White House Press Secretary Karoline Leavitt said Thursday, according to media reports. The decision will depend on the "substantial chance of negotiations that may or may not take place," Leavitt said.

In corporate news, Aflac (AFL) detected a cybersecurity incident on its US network and stopped the intrusion "within hours." Business remained operational and systems were unaffected by ransomware, while certain files may have been affected, the company said. Aflac (AFL) shares rose 0.3%.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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