Exchange-traded funds that buy bank stocks were surging Tuesday after a reading on inflation was softer than Wall Street analysts expected. Shares of the SPDR S&P Regional Banking ETF
KRE
were soaring 7.9% on Tuesday morning, according to FactSet data, at last check. The Invesco KBW Bank ETF
KBWB,
which holds major Wall Street banks, was up 5%.
U.S. bank stocks are jumping as U.S. Treasury yields tumble after fresh data Tuesday from the consumer-price-index showed headline inflation was flat in October. Regional banks had been hammered earlier this year on investor worries that elevated Treasury yields were pressuring their balance sheets, after Silicon Valley Bank collapsed in March. While Treasury yields were falling Tuesday, they remain up so far this year in the wake of the Federal Reserve aggressively raising its benchmark interest rate to tame the hottest inflation in decades. The annual pace of inflatio …
Article Attribution | Read More at Article Source