XLF Stock Recent News

Financial sector rallies as Fed rate cut hopes and easing regulations fuel a 22.94% jump in the Dow Jones U.S. Financials Index.

CNBC's "Fast Money" is joined by Gerard Cassidy, head of U.S. bank equity strategy and large cap bank analyst at RBC Capital Markets, to discuss the outlook for the banking industry, the upcoming results of the stress test and more.

The Federal Reserve reportedly voted Wednesday (June 25) to advance a proposal that would ease the “enhanced supplementary leverage ratio” that determines the amount of capital banks must hold against relatively low-risk assets. [contact-form-7] The Fed board voted 5-2 to advance the proposal, Reuters reported Wednesday.

Shares of several New York-based banks and real estate investment trusts fell on Wednesday as Zohran Mamdani's lead in New York City's Democratic mayoral primary stoked concerns that his proposed rent freeze could pressure building owners.

As we hit the halfway point of 2025, the year has proven anything but calm. Markets have faced several challenges, from geopolitical tensions and new tariffs to potential shifts in fiscal and monetary policy.

The U.S. remains the dominant global economic power, but ongoing trade tensions may threaten its long-term leadership. I continue to invest in American businesses, but believe diversifying internationally is prudent for long-term wealth building. Uncertainty from U.S. trade policies could prompt other nations to unify and reduce reliance on America, shifting global dynamics.

I rate XLF a Sell due to concerns about valuation, sector risks, and recent outperformance versus the broader market. Financials face significant risks from inflation, higher interest rates, and potential recession, despite some positive catalysts like possible deregulation. XLF's performance has been driven by a handful of large holdings, while the rest of the ETF is similar to the overall market return.

Jeffrey Solomon, TD Cowen president, joins 'Money Movers' to discuss markets, long-term investment plays and the bank trade.

Oppenheimer is downgrading the banks. It's our Call of the Day.

I rate XLF a buy, supported by strong earnings growth, sector resilience, and attractive valuations versus the S&P 500. Financials outperformed the S&P 500 for a second year, with diversified banks, payment processors, and insurers driving robust results. XLF offers exposure to top-performing financial stocks and boasts a low expense ratio, high liquidity, and consistent dividend growth.