The Financial Select Sector SPDR Fund (NYSE:XLF) tracks the financial stocks, which include companies like banks and brokers. Between June 7 and June 18, the ETF lost about 10% of its value.
Some analysts believe this move was due to inflation fears, but they also thought it was overdone and expected a rebound. But it hasn’t happened, and this could be a bearish dynamic for the rest of the market.
Big Tech gets most of the attention, but the financial stocks were one of the leading sectors in the move higher than the market made from February through May. There’s a chance now they could start to lead the broader markets lower.
