Sep. 5 at 7:37 PM
Financial stocks slid Friday after a weak August jobs report showed just 22,000 new positions, far below expectations, and prior months’ downward revisions. The data raised fears of a slowing economy and higher odds of Fed rate cuts, which could pressure banks’ net interest income.
The Vanguard Financials ETF fell 1.7%, the S&P 500 slipped 0.5%, and the KBW Bank Index dropped 1.8%. Schwab lost 5.5%, Robinhood 3.9%, Interactive Brokers 5.9%, Morgan Stanley 1.7%, and Stifel 2.5%. Wells Fargo declined 3%, Bank of America 1.7%, and JPMorgan 2.6%.
Despite strong Q2 earnings and record margin debt, concerns persist that weaker growth could reduce loan demand and client investment activity. Whether investors view this setback as temporary remains uncertain.
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