Sector Update: Financial Stocks Decline Late Afternoon

03:49 PM EST, 12/31/2025 (MT Newswires) -- Financial stocks were lower in late Wednesday afternoon trading, with the NYSE Financial Index and the State Street Financial Select Sector SPDR ETF (XLF) each decreasing 0.4%.

The Philadelphia Housing Index was falling 0.9%, and the State Street Real Estate Select Sector SPDR ETF retreated 0.7%.

Bitcoin (BTC-USD) was declining 1.2% to $87,321, and the yield for 10-year US Treasuries rose 3 basis points to 4.16%.

In economic news, adjusted initial jobless claims for the week ended Dec. 27 were 199,000, down from 215,000 in the week earlier.

The average rate on 30-year fixed home loans this week dropped to the lowest of the year, Freddie Mac said Wednesday. The closely watched housing market benchmark averaged 6.15% as of Wednesday, compared with 6.18% last week and 6.91% a year earlier.

In corporate news, Brookfield Asset Management (BAM) is launching its own cloud business, becoming the first major investment company to try to lease AI chips in data centers directly to developers, The Information reported, citing the company's global head of AI infrastructure. Brookfield shares were down 0.3%.

Flushing Financial's (FFIC) planned merger with OceanFirst Financial (OCFC) faces "inherent deal risk" even in a favorable regulatory backdrop for approval, Raymond James said. The companies said they have agreed to merge in an all-stock deal worth about $579 million. Raymond James downgraded its rating on Flushing Financial (FFIC) to market perform from outperform. Flushing Financial (FFIC) shares were down 1.5%, and OceanFirst fell 2%.

Apollo Global Management's (APO) cryptocurrency business Coinstar plans to repay its bondholders next month, as part of its sale to Arctic Slope Regional, Bloomberg reported. Apollo shares were down 0.5%.

Robinhood (HOOD) shares fell 2% after Goldman Sachs cut its price target to $164 from $167, while keeping the buy rating.

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