Banks, lenders and other financial companies fell, but not by as much as the broad market, as Treasury yields rose in the wake of Federal Reserve Chairman Jerome Powell's congressional testimony. Mr. Powell's sanguine view of economic growth and emphasis on the inflation-watching mandate caused traders on Fed funds futures markets to bid up the number of expected rate hikes this year from three to four.
While many economically cyclical sectors sold off on the prospect of a more hawkish central bank, the shares of bank holding companies, among the few that typically fare better in times of rising interest rates, held most of their recent gains.
JPMorgan Chase boosted its target for a key profitability metric to reflect an anticipated boost from tax cuts. JPMorgan lifted its target for the next two-to-three years for returns on tangible common equity to roughly 17% compared with its prior target of 15%.
--Rob Curran, [email protected]