Sector Update: Financial Stocks Fall Monday Afternoon

02:09 PM EDT, 03/09/2026 (MT Newswires) -- Financial stocks were lower in Monday afternoon trading, with the NYSE Financial Index shedding 1.5% and the State Street Financial Select Sector SPDR ETF (XLF) falling 1.9%.

The Philadelphia Housing Index was down 2.6%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) retreated 1.1%.

Bitcoin (BTC-USD) was increasing 4.3% to $68,808, and the yield for 10-year US Treasuries was slightly lower at 4.13%.

In sector news, the Federal Reserve may deliver "fewer" interest rate cuts this year amid fears that the ongoing Middle East conflict could drive inflation higher, Wells Fargo Investment Institute said in a report on Monday. The US-Israel war against Iran entered its 10th day, with no signs of de-escalation. "We have been expecting a pair of quarter-point interest rate cuts, but the risk now is for fewer 2026 rate cuts," Wells Fargo said.

In corporate news, Jefferies Financial (JEF) is facing "elevated" uncertainty over credit and legal risks, Morgan Stanley said in a note. The risks include $134 million of reported exposure to failed UK lender MFS and a separate lawsuit by Western Alliance (WAL) alleging missed payments of $126.4 million, the note said. Jefferies shares were down 2.4%.

Assured Guaranty (AGO) has declined to insure bonds issued by UK water utilities in the past 18 months, following default by Thames Water's parent firm, the Financial Times reported. The company has over $15 billion of exposure across some of the UK's most leveraged water utilities, the report said. Assured Guaranty (AGO) shares were down 0.8%.

Korn Ferry (KFY) fiscal Q3 earnings and revenue rose year over year, while the consulting firm issued a bottom-line outlook for the ongoing three-month period that indicated sequential growth. Korn Ferry (KFY) shares were shedding 2.4%.

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