Sector Update: Financial

01:20 PM EDT, 08/22/2025 (MT Newswires) -- Financial stocks were advancing in Friday afternoon trading, with the NYSE Financial Index and the Financial Select Sector SPDR Fund (XLF) each rising 1.8%.

The Philadelphia Housing Index was climbing 4.8%, and the Real Estate Select Sector SPDR Fund (XLRE) was up 1.8%.

Bitcoin (BTC-USD) was increasing 3.6% to $116,559, and the yield for 10-year US Treasuries was dropping 7 basis points to 4.26%.

In economic news, Federal Reserve Chair Jerome Powell on Friday indicated a potential monetary policy pivot to lower rates, saying that downside risks to employment were rising while the effects of tariffs on inflation will likely be short lived.

The odds of a 25-basis-point cut in interest rates in September climbed to 87% by Friday afternoon, up from 75% a day ago, according to the CME FedWatch Tool. The probability of the Fed leaving rates unchanged fell to 13% from 25% a day earlier.

In corporate news, JPMorgan Chase (JPM) will pay the Malaysian government 1.4 billion Malaysian ringgit ($330 million) as part of a deal to settle matters tied to its role in the 1MDB scandal, according to media reports. JPMorgan (JPM) shares were rising 1.8%.

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