Financial ETF falls to one-month low as Wells Fargo slumps

The largest exchange-traded fund to track the financial sector fell sharply on Monday, dropping for a second straight session and hitting an one-month low. The Financial Select Sector SPDR ETF
XLF, -0.95%
fell 1.8%, extending a 2.2% decline on Friday, which represented the biggest one-day drop for the fund since May. The ETF is trading at its lowest level since Jan. 11, and it has lost nearly 5% since an intraday peak hit on Jan. 29. The sector’s weakness was driven by Wells Fargo & Co.
WFC, -7.22%
which tumbled 7.7% after the bank said Federal Reserve sanctions over customer-accounts scandals could cut into profit by as much as $400 million this year. The decline in banks shares also comes as the yield for the benchmark 10-year Treasury note
TMUBMUSD10Y, +2.19%
climbs to 2.85%, extending its highest level in about four years. Rising yields, in theory, should be beneficial to a bank’s lending business. Among other banks, JPMorgan Chase & Co.
JPM, -0.16%
was down 0.6% while Citigroup Inc.
C, -0.88%
lost 1.3% and Bank of America Corp.
BAC, -0.58%
was off 1.2%. The sector was the biggest decliner of the day by far, in terms of the 11 primary S&P 500 industry groups. The Dow Jones Industrial Average
DJIA, -0.49%
fell 0.8% while the S&P 500
SPX, -0.40%
was down 0.6% and the Nasdaq Composite Index
COMP, -0.18%
fell 0.3%.

Quote References XLF -0.28 -0.95% WFC -4.63 -7.22% TMUBMUSD10Y +0.06 +2.19% JPM -0.18 -0.16% C -0.68 -0.88% BAC -0.19 -0.58% DJIA -124.01 -0.49% SPX -11.07 -0.40% COMP -13.39 -0.18% Show all references
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