Sector Update: Financial Stocks Decline Monday Afternoon

01:47 PM EST, 01/12/2026 (MT Newswires) -- Financial stocks were lower in Monday afternoon trading, with the NYSE Financial Index shedding 0.7% and the State Street Financial Select Sector SPDR ETF (XLF) falling 1.1%.

The Philadelphia Housing Index was adding 0.7%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) was up 0.1%.

Bitcoin (BTC-USD) was increasing 0.7% to $91,442, and the yield for 10-year US Treasuries was slightly higher at 4.18%.

In economic news, US Federal Reserve Chair Jerome Powell said President Donald Trump's displeasure with the Federal Open Market Committee's policy decisions is driving a Department of Justice probe into the central bank. Powell said late Sunday the Justice Department had subpoenaed Fed records regarding a $2.5 billion upgrade of the central bank's headquarters and his related testimony before Congress. The Fed chief described the Trump Administration's actions as a "pretext" to influence the central bank's policies.

In corporate news, some credit card issuers may see their revenue slashed by more than half as a result of a 10% interest rate cap floated by President Donald Trump, RBC Capital Markets said in a client note. Late Friday, Trump said in a social media post that he was calling for a one-year cap on credit card interest rates at 10%, beginning Tuesday next week. RBC sees the proposal as a temporary headwind for credit card companies, with Synchrony Financial (SYF) and Bread Financial (BFH) seen as the "most exposed" due to higher interest revenue charged on balances. Bread Financial (BFH) shares plunged past 10%, Synchrony slumped 8.5%. Capital One (COF) lost 6.4%, American Express (AXP) fell 4%, Visa (V) shed 1.7%, and Mastercard (MA) decreased 2%.

BBVA (BBVA) is trying to sell 380 million euros ($443.9 million) worth of mortgages as part of an effort to clear its balance sheet, Bloomberg reported. The Spanish bank is in talks with investors over loans tied to about 3,900 properties, according to the document, which outlines a project called Terral. BBVA shares added 1.7%.

HSBC (HSBC) said Monday that it has launched a United Arab Emirates asset management unit. The UK lender said it also registered 10 new onshore investment funds with the UAE's Securities & Commodities Authority. HSBC (HSBC) shares rose 1%.

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