Shares of banks and other financial institutions rose slightly as traders digested a mixed round of earnings.
The SPDR S&P Regional Banking exchange-traded fund recouped a portion of its losses from Tuesday.
Federal Reserve Chairman Jerome Powell's warning that recent data could force the Fed to reconsider rate-cut plans has driven Treasury yields to their highs of the year. "Heading into 2024, markets were offering an aggressive view of anticipated rate cuts," said JJ Kinahan, chief executive of IG North America and president of its brokerage tastytrade.
However, consistently stronger-than-expected economic data has pushed those hopes for cuts back later and later into the year." After Powell's statement, it was evident that "investors probably aren't going to see any drop in interest rates until at least the second half of the year," said Kinahan.
Shares of property-and-casualty insurer Travelers Cos. fell after it logged quarterly operating profit shy of Wall Street targets.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-17-24 1751ET
