This is something that’s probably worth noting.
The day after all 34 banks exceeded minimum projected capital and leverage ratios under severely adverse scenarios (or, more colloquially, the day after everyone passed the Fed’s stress tests), financial stocks stumbled as markets digested the results.
That was Friday.
And while you can make what you will of the DFAST fallout, one could argue that the main overhang for the financials is (or at least should be), the collapsing yield curve which has completely decoupled from bank stocks:
Given that, do consider that Friday saw the third largest daily outflow from the Financial Select Sector SPDR ETF (ticker “XLF”) since the election:
(BBG)
