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Sector Update: Financial Stocks Climb Friday Afternoon

BY MT Newswires | TREASURY | 08/22/25 01:39 PM EDT

01:39 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 about 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 sector news, JPMorgan Chase (JPM) and other banks in the US are lobbying the Office of the Comptroller of the Currency for uniform national standards that would supersede state-imposed rules, Reuters reported. The banks are seeking uniform US regulations on making loans, issuing bonds, providing investment banking services, and assessing money laundering risks without state interference, aiming to make it easier for them to operate, the report said.

In corporate news, Visa (V) has shut down its open-banking business in the US due to uncertainty around consumer-data rights and the prospect of higher fees for customer information, Bloomberg reported. Visa shares added 1.8%.

Jefferies Financial (JEF) has instructed its senior investment bankers to collaborate in order to maximize their bonuses, as the firm tries to land bigger corporate clients, The Financial Times reported. Jefferies shares popped 5.8%.

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%.

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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