Shares of banks and other financial institutions fell sharply amid growing anticipation of another bumper rate hike from the Federal Reserve.
A gradual increase in interest rates bolsters bank profitability. But rapid gains in benchmark Treasury yields threaten to curb demand for loans. A sharp increase in mortgage rates has already slowed activity in the housing market.
The yield on the 10-year Treasury note had its biggest two-day gain since July, and closed near the highs of the summer.
"Even if one adopts the view that the Fed's unusually stark communication of the full arc of their rate hike plans have allowed for faster transmission of that policy, there is still more hiking to be done and the full impact of those rates hikes has not yet been felt," said John Lynch, chief investment officer at Comerica Wealth Management.
Swiss bank Credit Suisse Group appointed Dixit Joshi as its new chief financial officer to replace David Mathers, who is stepping down after more than a decade in the job.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
08-22-22 1635ET
