Banks, lenders and other financial companies ticked down as traders hedged their bets on the outlook for interest rates.
New York Federal Reserve President William Dudley said that he sees a "reasonable case" to raise short-term interest rates next month and that any new fiscal stimulus approved by lawmakers in Washington could shape the central bank's expectations for additional rate increases next year.
"What we saw this week was profit-taking in some of the tech names that have done very well to reallocate some money to financials which are direct beneficiaries of higher yields and the potential from tax reform," said Quincy Krosby, chief market strategist at Prudential Financial.
The banks stand to gain because of the rate implications of tax cuts highlighted by Mr. Dudley, but also from lower corporate tax rates, said Ms. Krosby.
Investment firm Carlyle Group agreed to sell a stake in bond manager TCW Group to Japan's Nippon Life Insurance Co. The price of bitcoin shot back above $10,000 after the U.S. Commodity Futures Trading Commission said it would allow two major Chicago exchanges, CME Group and the Chicago Board Options Exchange, to launch bitcoin futures. The development will open up bitcoin to institutional and retail investors, and also to leverage.
-Rob Curran, [email protected]