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Sector Update: Financial Stocks Slide Monday Afternoon

BY MT Newswires | TREASURY | 07/07/25 01:54 PM EDT

01:54 PM EDT, 07/07/2025 (MT Newswires) -- Financial stocks were decreasing in afternoon trading, with the NYSE Financial Index shedding 1.1% and the Financial Select Sector SPDR Fund (XLF) off 1%.

The Philadelphia Housing Index was falling 1.4%, and the Real Estate Select Sector SPDR Fund (XLRE) was retreating 1.1%.

Bitcoin (BTC-USD) was down 0.7% at $108,191, and the yield for 10-year US Treasuries was rising 4.9 basis points to 4.39%.

The Trump administration signaled that country-specific tariffs will take effect Aug. 1, weeks after the initial rate pause is set to end. Treasury Secretary Scott Bessent told reporters over the weekend that country-specific tariffs will "boomerang" to their April 2 rates on Aug. 1 for countries that fail to reach new trade agreements with the US.

In corporate news, Progressive's (PGR) previous investment thesis of unencumbered growth and margin expansion is nearing its end, amid rising competition and valuation pressures, Morgan Stanley said in a report Monday. Morgan Stanley downgraded Progressive to equal-weight from overweight and cut its price target to $290 from $330. Progressive shares were falling 3.2%.

BlackRock (BLK) said Monday it has signed a definitive agreement to acquire ElmTree Funds, a net-lease real estate investment firm with $7.3 billion in total assets under management. Separately, BlackRock (BLK) dropped talks with potential investors for the Ukraine Development Fund earlier this year, as US President Donald Trump took office and clashed with Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin, Bloomberg reported Saturday. BlackRock (BLK) shares were down 0.5%.

Blackstone (BX) is looking for ways to enter the private credit-secondaries market, Bloomberg reported. Separately, Blackstone said it has agreed to buy Allegiant Travel's (ALGT) Sunseeker Resort for about $200 million. Blackstone shares fell 1.8%.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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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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