SPDR Select Sector Fund - Financial (ARCA: XLF)

에 대한 최신 뉴스 SPDR Select Sector Fund - Financial (ARCA:XLF)

SPDR Select Sector Fund - Financial

Financial Services

Industrials

Technology

The fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes securities of companies from the following industries: diversified financial services; insurance; banks; capital markets; mortgage real estate investment trusts (REITs); consumer finance; and thrifts and mortgage finance. The fund is non-diversified.

Berkshire Hathaway, Inc.

Jpmorgan Chase & Co.

Visa Inc-Class A Shares

Mastercard Inc Common Stock Usd 0.0001

Bank Of America Corp.

Wells Fargo & Co.

Goldman Sachs Group Inc.

S&P Global Inc

American Express Co.

Progressive Corp.

The Financial Select Sector SPDR Fund

Equities

Government

Large Cap

Mid Cap

Regulations

Federal Reserve

Movers

Real Estate

ALLY

미국 연방준비제도(연준)의 연례 은행 스트레스 테스트는 수요일에 대형 은행들이 경기 침체 시나리오에서 작년보다 더 큰 예상 손실에 직면하고 있지만, 여전히 심각한 경기 침체를 견디고 최소 자본 요건을 유지할 수 있는 좋은 위치에 있음을 보여준다.

2024년 연준 스트레스 테스트: 대형 은행들은 심각한 불황에 큰 손실을 겪지만 강한 자본력 유지(정정)

Sector ETFs

Trading Ideas

ETFs

AAPL

MSFT

NVDA

APPL

한 주요 시장 전략가는 여러 주요 시장 지수 이벤트와 하반기 시작을 앞두고 주식 지수가 사상 최고치로 거래되는 상황에서 시장이 잠시 멈출 수 있다고 생각한다.

시장은 사상 최고치 이후 정상적인 일시 정지를 경험할 것, 이익 실현의 시간: 전문가

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Broad U.S. Equity ETFs

Small Cap

Markets

Tech

ANET

AVGO

ETSY

GNRC

INCY

PARA

QRVO

SIRI

SMCI

TEAM

TSLA

XLRE

Select Sector SPDR-Consumer Discretionary

기술주가 시장 상승세를 주도함에 따라 나스닥 100 지수는 목요일에 4일 연속 올랐다. 이 지수는 0.6% 오른 19,576포인트로 마감하며 사상 최고치를 경신했다.S&amp;P 500 지수도 4일 연속 올랐다. 목요일 이 지수는 0.2% 상승해 사상 최고치인 5,433포인트를 기록했다. 실망스러운 실업 수당 청구 데이터로 인한 오전 하락세에서 반등했다.

나스닥 100, S&amp;P 500은 기술주가 우위를 되찾으며 사상 최고치로 마감: 상승주와 하락주

A federal judge&#8217;s call for <a href="https://www.benzinga.com/markets/equities/24/06/39325828/visa-and-mastercard-face-potential-setback-as-new-york-judge-indicates-disapproval-of-proposed-3">a revised settlement</a> from Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) and Mastercard Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) after tossing out their $30 billion antitrust settlement on June 25 should not have much of an impact on their similar business models, according to an analyst.
U.S. District Judge Margo Brodie in Brooklyn wrote on Friday that the banks could handle a &#8220;substantially&#8221; larger settlement, arguing that the deal would have "disproportionately and inequitably" benefited small, local merchants over larger retailers such as Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-06-29/visa-mastercard-could-handle-bigger-swipe-fee-deal-judge-says?sref=TBDibEcD">reported</a>.
Despite Brodie&#8217;s opinion, JPMorgan remained Overweight on both Visa and Mastercard on the belief that &#8220;the diversity, complexity and scale of their business models give each substantial ability to preserve overall pricing and maintain earnings growth.&#8221;
&#8220;In isolation (and acknowledging a wide spectrum of outcomes) we don't find the court's commentary overly concerning and based on the memo's text we think that V/MA's economic model is unlikely to be materially impacted by a revised agreement,&#8221; JPMorgan analyst Tien-tsin Huang wrote in a note on Monday.
&#8220;In our view, a worse outcome would be if an agreement cannot be made and the litigation proceeds to trial, which widens the spectrum of potential outcomes.&#8221;
Also Read: <a href="https://www.benzinga.com/news/legal/24/06/39334846/visa-mastercards-30b-deal-hits-a-snag-judge-signals-rejection">Visa, Mastercard&#8217;s $30B Deal Hits A Snag: Judge Signals Rejection</a>
The initial agreement, which is aimed at resolving two decades of legal battles over credit-card swipe fees, would have let big retailers charge higher fees on Visa or Mastercard credit cards while allowing smaller merchants to use pricing tactics that steer consumers to lower-cost cards, according to Brodie&#8217;s opinion.
The "cost" of the settlement is the estimated $30 billion that the merchants would end up saving over five years, the judge noted.
But Brodie further wrote in her opinion that the estimated $6 billion in annual savings to merchants is &#8220;paltry compared to the $100 billion that merchants paid&#8221; in interchange fees on Visa and Mastercard transactions last year, according to Bloomberg. The two firms could "withstand a substantially greater judgment," she said.
The judge&#8217;s opinion for a revised settlement is &#8220;a net-negative for the stocks,&#8221; but it does not seem as bad as other recent bear views, Huang said.
Price Action: Visa dipped 0.06% to $262.32 by Monday&#8217;s mid-afternoon trading, while Mastercard declined 0.65% to $438.30. 
Two exchange-traded funds that give investors exposure to Visa and Mastercard stocks saw modest gains, however, by mid-afternoon. Shares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) rose by 0.33%, while SPDR Select Sector Fund – Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) gained 0.21%.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/06/39325828/visa-and-mastercard-face-potential-setback-as-new-york-judge-indicates-disapproval-of-proposed-3">Visa And Mastercard Face Potential Setback As New York Judge Indicates Disapproval Of Proposed $30B Antitrust Settlement</a></li>
</ul>
Photo: Shutterstock

Analyst Color

Specialty ETFs

Legal

Analyst Ratings

iShares Trust Dow Jones US Financial Services Index Fund

Visa, Mastercard Deal 'Unlikely To Be Materially Impacted' By A Revised Antitrust Settlement: Analyst

A JPMorgan analyst has reacted to the Federal Reserve&#8217;s annual stress test results for U.S. banks, which assess their resilience by estimating losses, revenues, expenses, and capital levels under various economic scenarios. The results were <a href="https://www.benzinga.com/markets/equities/24/06/39513681/fed-stress-test-2024-large-banks-face-greater-losses-but-maintain-strong-capital-positions-in-se">announced on Wednesday.</a>
Key Insights: Analyst Vivek Juneja recapped the stress test for large-cap banks, with the results being a &#8220;much bigger surprise than expected.&#8221;
The tests returned a substantial increase in stress capital buffers (SCB) at the majority of large-cap banks, leading to a corresponding increase in capital requirements.
&#8220;We expect this sharp increase in capital requirements may delay or reduce long term capital return plans. All our banks comfortably exceed their minimum requirements and should benefit from further accretion of OCI losses. However, the money center banks in our universe will now have lower cushion of 1.2-1.4% over minimum requirement in CET1 [Common Equity Tier 1] ratio, with one broker dealer at a much thinner 70bp cushion,&#8221; the analyst said.
Winners and Losers: Citigroup Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) fared comparatively well, according to Juneja. SCB is likely to decline by 20bp. The Fed&#8217;s test skewed toward a harsher U.S. recession, which benefitted banks such as Citi which depend on foreign revenues.
Goldman Sachs Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) and Wells Fargo &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) got the shorter end of the stick. Both had SCBs raised by 90bp each (using consensus dividends, Goldman would have a 100bp raise).
All banks discussed by the analyst are &#8220;well above&#8221; capital ratios, but several large names had narrow cushions. Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) will have the narrowest cushion of 120bp on its CET1 ratio, per Juneja. Citi and Wells Fargo will have a 140bp each.
USB Downgrade: The analyst downgraded U.S. Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>) from Overweight to Neutral with a price target of $43.50 following the stress test.
&#8220;The sharp increase in capital requirements adds another headwind and would delay capital return plans &#8211; we do not see a catalyst medium term. US Bancorp is one of our only banks that has indicated no plans for share buybacks.&#8221;
The Market Reacts: Goldman Sachs fell 2.22% to $445.96 on Thursday.
Shares of bank exchange-traded-funds fell following the results. The Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) was down 0.12% on the day.
Comparatively, regional banks outperformed larger banks. The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) closed 1.06% higher on Thursday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39525918/major-banks-fall-short-in-feds-2024-stress-test-results-the-market-will-view-the-re">Fed&#8217;s 2024 Stress Test Results Worse Than Expected, Says Goldman Analyst: &#8216;The Market Will View The Results As Disappointing&#8217;</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

Downgrades

Price Target

Economics

Bank Stress Tests 'Much Bigger Surprise Than Expected,' Will Delay Future Investment Plans: JPMorgan

Editor&#8217;s note: This story erroneously included stock information for Citizens Inc. rather than Citizens Financial Group Inc, which is the company mentioned in the Federal Reserve&#8217;s stress test report, and has been corrected.
The Federal Reserve Board&#8217;s annual bank stress test Wednesday reveals that while large banks face greater projected losses than last year in a downturn scenario, they remain well-positioned to endure a severe recession and maintain their capital <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39461418/us-bank-stress-tests-this-week-analyst-expects-improvement-8-stocks-3-etfs-to-watch">requirements above minimum thresholds. </a>
&#8220;This year&#8217;s stress test shows that large banks have sufficient capital to withstand a highly stressful scenario and meet their minimum capital ratios,&#8221; said the Fed&#8217;s vice chair for supervision Michael S. Barr.
Although this year&#8217;s stress test adverse scenario is as severe as last year&#8217;s, it resulted in greater losses due to slightly riskier bank balance sheets and increased expenses, he said. 
Reflecting on the 2023 regional bank crisis, Barr emphasized that important lessons have been learned.
The Fed stated that &#8220;large banks are generally well-positioned to withstand a sudden funding shock in the form of shifting deposits.&#8221; Additionally, bank net interest income remains resilient in a high-rate environment, even when factoring in the funding shock assumptions.
<h3 class="wp-block-heading">2024 Bank Stress Test Details, Results</h3>
This year&#8217;s test showed that all 31 banks remained above their minimum common equity tier 1 (CET1) capital requirements despite total projected hypothetical losses nearing $685 billion.
The hypothetical scenario for this year&#8217;s test mirrors last year&#8217;s severe global recession test, including a 40% decline in commercial real estate prices, a significant rise in office vacancies and a 36% drop in house prices. The unemployment rate peaks at 10% in the stress test, with a corresponding decline in economic output.
Under the stress scenario, the aggregate CET1 capital ratio is expected to decline by 2.8 percentage points, from 12.7% to 9.9%. Although this is a greater decline than last year&#8217;s test, it remains within the range of recent tests.
Three main factors contribute to the larger capital decline in this year&#8217;s test:
<ol>
<li>Increased Credit Card Losses: A substantial rise in credit card balances and higher delinquency rates lead to greater projected credit card losses. The banks most exposed to credit card losses were Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>) and Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>).</li>
<li>Riskier Corporate Credit Portfolios: Banks have downgraded their corporate loans, reflecting increased risk and resulting in higher projected corporate losses. Banks set to face the largest impact on their corporate loan balances are Discover Financial Services, Barclays plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BCS#NYSE">BCS</a>) and Citizens Financial Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>).</li>
<li>Higher Expenses and Lower Fee Income: Reduced projected income from higher expenses and lower fee income exacerbates the capital decline.</li>
</ol>
The projected losses include $175 billion in credit card losses, $142 billion from commercial and industrial loans and $77 billion from commercial real estate.
&#8220;Large bank exposure to commercial real estate (CRE) debt remains an area of focus for Federal Reserve supervisors,&#8221; the report says. 
The 2024 supervisory severely adverse scenario includes increased stress in commercial real estate (CRE), with a 40% drop in CRE prices.
Although projected losses on loans to office properties have risen due to worsening fundamentals in the office segment, the Fed said these losses are balanced by a decrease in projected losses on loans to hotels and retail properties, as market fundamentals for these sectors have improved over the last year.
Market Reactions: Capital One Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), Citizens Financial Group and Goldman Sachs were among the worst performers of the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) components in after-market trading as of 5:05 p.m. ET. The top performer was Truist Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>), up 1.7%
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39506069/yen-plummets-to-160-against-dollar-lowest-since-december-1986-is-bank-of-japan-inte">Yen Plummets To 160 Against Dollar, Lowest Since December 1986: Is Bank Of Japan Intervention Imminent?</a>
Photo via Shutterstock.

Fed Stress Test 2024: Large Banks Face Greater Losses But Maintain Strong Capital Positions In Severe Recession Scenario (CORRECTED)

The latest Federal Reserve stress test results have highlighted &#8220;the inherent opacity&#8221; of the <a href="https://www.benzinga.com/federal-reserve">Fed evaluation process</a>, according to Bank of America analyst Ebrahim H. Poonawala.
The tests, which assess the resilience of banks under severe economic scenarios, revealed a wide range of impacts on minimum capital requirements. Overall, they demonstrated that the institutions have sufficient buffers to weather the storm, albeit with <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39525918/major-banks-fall-short-in-feds-2024-stress-test-results-the-market-will-view-the-re">higher-than-expected losses.</a>
<h3 class="wp-block-heading">Bank Of America&#8217;s Key Insights From the Stress Test Results</h3>
&#8216;Goldman Sachs Worst Hit&#8217;: Goldman Sachs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>) experienced the largest year-over-year increase in its stress capital buffer (SCB), rising by 100 basis points (bps), which could poses a negative impact on return on equity (ROE) and slower share buybacks in the latter half of 2024, according to Bank of America. Poonawala maintains a Buy rating on Goldman Sachs, confident in the stock&#8217;s long-term prospects.
Wells Fargo Well-Positioned: Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>) &#8220;is well positioned to handle its 90bps SCB increase. We don&#8217;t expect the drag from the higher SCB to last,&#8221; Poonawala stated. Bank of America anticipates Wells Fargo to achieve a 14-15% return on tangible common equity (ROTCE) by 2026, assuming the CET1 ratio remains above 11%.
Citigroup Should Positively React: Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) stands out with a 30bps decline in its SCB, potentially freeing up $3 billion for share buybacks. According to Bank of America, this positive development could enhance operating leverage and investor confidence in achieving its 11-12% ROTCE target.
&#8216;Huntington Best Hit&#8217; Among Regional Banks: Banks like Huntington (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NYSE">HBAN</a>) saw a significant 70bps decline in SCB, suggesting a favorable outlook for resuming share buybacks. Conversely, Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>) experienced a 60bps increase, the highest among regional banks, which might pressure its shares. M&amp;T Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>) and Truist Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>) also showed positive outcomes, with excess capital paving the way for potential buybacks. 
Citizens Financial Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>) shares may face pressure due to the 60bps year-over-year increase in SCB, the highest among regional banks. Conversely, KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>) shares could see some relief, alleviating concerns about dividend sustainability.
<h3 class="wp-block-heading">Market Reactions: Regionals Outperform Large Banks</h3>
U.S. bank shares dipped slightly following the stress test results, with the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) and the Invesco KBW Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBWB#NYSE">KBWB</a>) each down 0.4%. 
In contrast, regional banks outperformed their larger peers, with the SPDR S&amp;P Regional Banking (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) gaining 0.4%. 
Among large institutions, Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>) and Goldman Sachs were the worst performers, both down 2.1%.
Within regionals, First Foundation Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFWM#NYSE">FFWM</a>) and Dime Community Bancshares Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCOM#NYSE">DCOM</a>), outperformed, up 4.9% and 3.6% respectively. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/macro-notification/24/06/39527471/gdp-growth-upwardly-revised-in-q1-but-consumer-spending-weakens-continuing-jobless-cla">GDP Growth Upwardly Revised In Q1 But Consumer Spending Weakens, Continuing Jobless Claims Hit Nearly 3-Year Highs: Thursday&#8217;s Economic Digest</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Macro Economic Events

DCOM

FFWM

HBAN

KBWB

Bank of America Analyst Highlights Fed Stress Test Opacity, Varying Bank Impacts: 'Goldman Sachs Worst Hit, Huntington Best'

Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) shares are trading lower today. Visa has partnered with Amazon.Com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) to offer Canadian consumers more <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39522174/visa-expands-payment-options-for-amazon-customers-with-installments-plans" rel="noreferrer noopener">flexible payment options at checkout.</a>
Eligible Royal Bank Of Canada (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RY#NYSE">RY</a>) and The Bank of Nova Scotia (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BNS#NYSE">BNS</a>) credit cardholders can now select Installments enabled by Visa for qualifying purchases on Amazon.ca or the Amazon app.
This new option allows consumers to convert purchases into smaller, fixed payments over a set period.
&#8220;We are excited to offer our installments solution on Amazon through two of Canada&#8217;s leading issuers, granting more consumers access to diversified payment methods and greater financial control with one of the world&#8217;s largest online merchants,&#8221; said Dan Sanford, Head of Product for North America at Visa.
Installments are becoming a popular payment method among Canadians. Visa&#8217;s research indicates that 58% of Canadians are interested in using installments, and by 2026, this method is expected to account for nearly a quarter of all global e-commerce transactions.
Related Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39502281/judge-tosses-the-card-visa-mastercard-swipe-fee-settlement-reportedly-rejected" rel="noreferrer noopener">Judge Tosses The Card: Visa-Mastercard Swipe Fee Settlement Reportedly Rejected</a>
This collaboration with Amazon aims to meet this growing consumer demand.
Tyler Aldrich, Director of Amazon Payment Products, said, &#8220;Together with Visa, we&#8217;re pleased to offer customers greater choice, enabling customers to pay for their online purchases in ways that are convenient for them.&#8221;
Installments enabled by Visa provide issuers, processors, and merchants with a better payment option to meet customers where they are.
Visa and Amazon plan to extend this payment option to more consumers globally, enhancing the convenience and flexibility of online shopping.
Visa stock has gained more than 18% in the last 12 months. Investors can gain exposure to Visa and Mastercard stock via&nbsp;iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and SPDR Select Sector Fund – Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Price Action: V shares are trading lower by 1.64% at $269.12 at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a target="_blank" href="https://www.benzinga.com/markets/asia/24/06/39428693/china-calls-on-visa-and-mastercard-to-slash-bank-card-transaction-fees-by-up-to-half-report" rel="noreferrer noopener">China Calls On Visa And Mastercard To Slash Bank Card Transaction Fees By Up To Half: Report</a>
Image from Shutterstock

News

General

AMZN

Shop Smart: Visa And Amazon Bring Flexible Payment Plans To Canadian Shoppers

Stress Test Shows Banks' Corporate Credit Portfolios Have Become Riskier, Partly Reflected In Banks' Downgrading Of Their Own Loans, Resulting In Higher Projected Corporate Losses

HSBC

Fed Bank Stress Test Results: BMO, Citizens Financial And HSBC Saw Lowest Capital Ratios Under Stress Test; Banks Permitted To Report Capital Plans To Investors Beginning Friday Afternoon After Us Market Close

Econ #s

Fed Bank Stress Test Results: Higher Expenses And Lower Fee Income Also Contributed To Steeper Stress Test Losses; Increases In Bank Credit Card Balances And Higher Delinquency Rates Drove Greater Hypothetical Losses; Charles Schwab, Bank Of New York Mellon, JPMorgan Chase And Morgan Stanley Among Strongest Performing Banks

Fed Says Banks Pass Stress Test, Paving Way For Higher Payouts

On Tuesday, U.S. District Judge Margo Brodie reportedly dismissed a $30 billion antitrust settlement in which Visa Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) and Mastercard Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) had agreed to cap the fees they charge merchants for accepting their credit and debit cards.
The decision could compel Visa and Mastercard to negotiate a more favorable settlement for merchants or proceed to trial, Reuters reports.
Related: <a target="_blank" href="https://www.benzinga.com/news/legal/24/06/39334846/visa-mastercards-30b-deal-hits-a-snag-judge-signals-rejection" rel="noreferrer noopener">Visa, Mastercard&#8217;s $30B Deal Hits A Snag: Judge Signals Rejection</a>
Numerous merchants and trade groups, including the National Retail Federation, opposed the agreement, arguing that card fees would still be too high and that Visa and Mastercard would retain excessive control over card transactions.
As per the report, trade groups argued that the settlement would have provided merchants with only minimal and temporary relief, while also complicating their ability to pursue future legal challenges.
Brodie will release a written opinion explaining her reasoning after allowing merchants and the card networks until June 28 to propose redactions.
Visa and Mastercard expressed disappointment with the outcome.
The companies announced the settlement on March 26, aiming to resolve most of the litigation that began in 2005 over &#8220;swipe fees&#8221; or interchange fees, which merchants pay to accept <a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37939460/visa-and-mastercard-settle-historic-antitrust-suit-with-us-merchants-whats-on-the-cards" rel="noreferrer noopener">Visa and Mastercard and are set by the card networks</a>.
The settlement stipulated that the average swipe fee would decrease by at least 0.04 percentage points for three years and remain at least 0.07 percentage points below the current average for five years.
Investors can gain exposure to Visa and Mastercard stock via&nbsp;iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;SPDR Select Sector Fund – Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Read: <a target="_blank" href="https://www.benzinga.com/news/24/03/37968072/visa-and-mastercard-reach-deal-to-lower-swipe-fees-a-win-for-merchants-and-potential-boost-for-consu" rel="noreferrer noopener">Visa and Mastercard Reach Deal to Lower Swipe Fees, A Win for Merchants and Potential Boost for Consumer Choices: Analyst</a>
Price Action: V shares are down 0.08% at $273.31 premarket at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by PixieMe via Shutterstock.

Judge Tosses The Card: Visa-Mastercard Swipe Fee Settlement Reportedly Rejected

Federal Reserve Proposes Weaker Version Of Bank Capital Overhaul

Wall Street faces a continuation of last week&#8217;s trend during Monday&#8217;s morning trading, with semiconductor stocks selling off heavily and dragging down the tech sector, while the broader market remains largely unaffected.
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) fell over 4%, entering correction territory after dropping more than 14% from last week&#8217;s all-time highs. 
SEC filings <a href="https://www.benzinga.com/quote/NVDA/insider-trades">on insider activity</a> reveal that Nvidia&#8217;s CEO Jen Huang sold more than $100 million worth of shares between June 13 and June 21, 2024, marking his first sale since December 2021.
The VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) fell over 2%, extending last week&#8217;s declines. 
Alongside Nvidia, Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) and Microchip Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>) were notable laggards, dropping 9.6% and 8.3%, respectively.
While the Nasdaq 100 eyes its third consecutive negative session, other major indices posted gains: the S&amp;P 500 rose 0.3%, the Russell 2000 gained 0.8%, and the Dow Jones Industrial Average rallied 0.9%, potentially marking its strongest session since late May.
Treasury yields remained steady, the U.S. dollar fell 0.3%, gold prices increased 0.4% and energy-related commodities saw gains, with crude and natural gas up approximately 1% and 2%, respectively.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell over 4% to $60,400, heading for its seventh negative session in the last eight, as the broader cryptocurrency market&#8217;s momentum remains fragile.
<h1 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,496.67</td>
<td>0.9%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,032.89</td>
<td>0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,482.39</td>
<td>0.3%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,629.54</td>
<td>-0.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:39 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.2% higher to $545.59.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;was 0.9% higher to $394.65.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) was 0.6% lower to $477.21.</li>
<li>Sector-wise, the&nbsp;Energy&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)&nbsp;outperformed, up by 1.5%, while the&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, falling 1.6%.</li>
</ul>
<h1 class="wp-block-heading">Monday&#8217;s Stock Movers</h1>
<ul>
<li>Energy giants ConocoPhillips (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COP#NYSE">COP</a>) and Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) rallied nearly 3% in reaction to energy commodity gains. </li>
<li>Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) fell over 3%, extending last week&#8217;s declines initiated by reports that artificial intelligence laptops powered by its Snapdragon processor had trouble running certain applications.</li>
<li>Crypto-linked stocks such as Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>), and Marathon Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) fell 7%, 6% and 4%, respectively. Bitcoin-tied Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) tumbled 7.8%. </li>
<li>ResMed Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RMD#NYSE">RMD</a>) plummeted over 11%, after it received a downgrade from Buy to Neutral by Citigroup. </li>
<li>Alnylam Pharmaceuticals Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ALNY#NASDAQ">ALNY</a>) surged over 30% after its investigational therapy vutrisiran for treating ATTR amyloidosis with cardiomyopathy met both its primary and secondary endpoints in a late-stage study.</li>
</ul>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39461418/us-bank-stress-tests-this-week-analyst-expects-improvement-8-stocks-3-etfs-to-watch">US Bank Stress Tests This Week, Analyst Expects Improvement: 8 Stocks, 3 ETFs To Watch</a>
Photo: Shutterstock

Commodities

$BTC

ALNY

CLSK

COIN

SPDR Dow Jones Industrial Average ETF Trust

MARA

MCHP

MRVL

QCOM

Semiconductor, Nvidia Woes Deepen; Nasdaq 100 Slips, Dow Rallies; Bitcoin Sinks To $60,400: What's Driving Markets Monday?

The U.S. banking sector is bracing for the 2024 stress test results, scheduled to be released Wednesday <a href="https://www.benzinga.com/markets">after the market closes</a>.
Bank of America analyst Ebrahim H. Poonawala expects this year&#8217;s stress test to show overall improved capital buffers compared to 2023, given the moderately better severely adverse scenario outlined by the Federal Reserve.
<h1 class="wp-block-heading">Improved Capital Buffers Expected</h1>
According to Poonawala, banks are entering the 2024 stress test with approximately 300 basis points (bp) of excess Common Equity Tier 1 (CET1) capital above regulatory minimums, a notable increase from around 185 bp last year. 
&#8220;Surprises from the annual stress test results are inevitable given the inherent opacity, but we expect these to be manageable,&#8221; Poonawala stated. 
The improved capital position would imply a better ability to absorb an increase in the stress capital buffer, which is a positive development as banks navigate real-life challenges posed by the current macroeconomic backdrop and changing regulatory attitudes.
<h1 class="wp-block-heading">Bank Stress Test&#8217;s Severely Adverse Scenario</h1>
The 2024 stress test&#8217;s four scenarios, designed to provide the Federal Reserve with insight into the resiliency of the U.S. banking system, focuses on funding stress and the failure of five large hedge funds. 
In the Fed&#8217;s hypothetical severely adverse stress scenario, the Dow Jones Index is expected to fall 55%, the unemployment rate to rise by 6.3 percentage points to 10%, the VIX or fear index to spike to 75, and the residential and commercial real estate (CRE) markets to experience declines of 36% and 40%, respectively.
Poonawala noted, &#8220;We wondered if the Fed would inject a much steeper fall in CRE prices given the heightened focus on this asset class. CRE prices are expected to decline by 40% from start to trough, consistent with prior years (&#8217;18, &#8217;21, and &#8217;23).&#8221;
According to Bank of America, there is sensitivity to the potential for the Fed to emphasize certain issues, such as CRE, which could lead to unexpected outcomes.
<h1 class="wp-block-heading">Bank Stocks And ETFs To Watch</h1>
Bank of America is closely monitoring the performance of several banks, including the five new stress test participants: Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>), Fifth Third Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FITB#NYSE">FITB</a>), Huntington Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>), KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>), and Regions Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>).&nbsp;
&#8220;Banks that did not participate in last year&#8217;s stress test could potentially experience harsher loss rates given a worse outlook for GDP, unemployment rate, and CRE values vs. 2022,&#8221; Poonawala stated. 
Other institutions of particular interest according to Bank of America are Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>) and M&amp;T Bank Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>).
With a 90 bp decline in stress-test capital buffers (SCB) from 2023 to 2021, driven by reduced exposure to private investments, Goldman Sachs may see continued relief and capital optimization. &#8220;Lower CET1 req. should be viewed positively, supportive of stock momentum,&#8221; Bank of America wrote.
Citigroup would also benefit from a lower CET1 requirement since it could facilitate increased share buybacks over the next year.
With the highest exposure to CRE loans and approximately 250 bp of excess capital above regulatory minimums, M&amp;T is managing towards an 11% CET1 target.
Last year, the bank index closed 1.8% higher (compared to 0.4% for the S&amp;P 500) following the stress test results. Banks that saw a decline in their SCBs rose by 2.6%, those with unchanged SCBs increased by 1.1%, and those with higher SCBs gained 0.4%. This year, investors will be keenly watching for similar trends.
&#8220;Last year banks where the SCB declined, outperformed the bank index (BKX) by 80bp on average the following day and by 220bp vs. those that saw their SCBs rise,&#8221; Poonawala wrote. 
Three banking-related ETFs to keep an eye on this week are:
<ul>
<li>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</li>
<li>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>)</li>
<li>SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>)</li>
</ul>
Read Now: <a href="https://www.benzinga.com/top-stories/24/06/39457749/tesla-leads-2024-us-tech-layoffs-so-far-followed-by-dell-cisco-xerox-paypal-microsoft">Tesla Leads 2024 US Tech Layoffs So Far, Followed By Dell, Cisco, Xerox, PayPal, Microsoft</a>
Photo: Shutterstock

FITB

US Bank Stress Tests This Week, Analyst Expects Improvement: 8 Stocks, 3 ETFs To Watch

JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) shares are trading higher today. On Friday, the bank disclosed renovation and expansion plans for its Brickell office in Downtown Miami, along with the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39435652/jpmorganchase-unveils-expansion-plans-in-south-florida" rel="noreferrer noopener">opening of a new office in West Palm Beach</a>.
In particular, JPMorgan Chase plans to expand its downtown Miami office from 80,000 to 160,000 square feet, accommodating 400 more employees.
Additionally, the firm will open a new 13,000 square foot office at 360 Rosemary in West Palm Beach, consolidating over 60 employees from various lines of business and functions.
The firm&#8217;s expansion of its footprint in South Florida is projected to stimulate an average of $151 million in additional economic activity for the region and generate about 380 local construction jobs annually during the building phase.
Jonathan Bello, head of Chase for Business Miami and co-chair of the firm&#8217;s South Florida Market Leadership Team stated, &#8220;Miami and South Florida are home to an increasing number of our clients, customers, community partners and employees, and a strategic location for our operations in Latin America as well.&#8221;&nbsp;
&#8220;Like our investment with Inter-Miami CF to create Chase Stadium, these expansions reflect the opportunity that this area represents as well as our commitment to be the bank for all in South Florida.&#8221;
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/06/39312262/jpmorgans-500m-venture-capital-fund-bets-big-on-weight-loss-drugs-theyre-all-the-rage" rel="noreferrer noopener">JPMorgan&#8217;s $500M Venture Capital Fund Bets Big On Weight-Loss Drugs: &#8216;They&#8217;re All The Rage&#8217;</a>
Investors can gain exposure to the stock via&nbsp;iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and&nbsp;SPDR Select Sector Fund – Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Price Action:&nbsp;JPM shares are up 1.08% to $198.41&nbsp;at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by Katherine Welles on Shutterstock

What Going On With JP Morgan Shares Today?

A leading market strategist thinks the markets could pause ahead of several key market index events and start of the second half of the year, with stock indexes trading <a href="https://www.benzinga.com/markets/equities/24/06/39418966/s-p-500-nasdaq-100-dip-from-record-highs-as-investors-take-chipmaker-profits-energy-sector-rebou">at all-time highs.</a>
What Happened: Technology giant NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) recently passed Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to briefly become the <a href="https://www.benzinga.com/news/24/06/39386946/microsoft-apple-step-aside-nvidia-is-now-the-most-valuable-public-company-in-the-world">most valuable company in the world.</a>
The 200% gain for Nvidia shares in the last year has helped major stock indexes, but could also lead to changes from investors in the second half of 2024.
"I think we're a little out over our skis," Freedom Capital Markets Chief Global Strategist Jay Woods <a href="https://www.cnbc.com/video/2024/06/20/the-market-is-due-for-a-pause-says-freedom-capitals-jay-woods.html?__source=sharebar%7Ctwitter&amp;par=sharebar">said </a>in a CNBC interview.
Woods cited <a href="https://www.benzinga.com/news/24/06/39368302/state-street-technology-etf-to-put-nvidia-before-apple-in-revamp">the major rebalancing</a> of the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) that will see Nvidia as a larger holding. Woods also mentioned it was changing at the top for market capitalization dominance among the three companies.
"That's changing how people are restricting their portfolios."
<a href="https://x.com/JayWoods3">Woods </a>said technical show stocks and indexes above major moving averages led to "a lot of euphoria in the market."
"After awhile, you're gonna pause."
Woods said the rebalancing of XLK and reconstitution of the Russell 2000 are key events coming around the second half of the year. Investors could be looking to cut back on their exposure to Nvidia after the sharp run-up in the first half of 2024, Woods said.
"A pause given the great run we've had is just a normal, routine thing."
Woods said, "now's the time if you have profits to book them."
Related Link: <a href="EXCLUSIVE: Nvidia Dow Jones Inclusion 'A Matter Of When' — Will It Replace Int">EXCLU</a><a href="https://www.benzinga.com/top-stories/24/05/39011237/exclusive-nvidia-dow-jones-inclusion-a-matter-of-when-will-it-replace-intel">SIVE: Nvidia Dow Jones Inclusion &#8216;A Matter Of When&#8217; — Will It Replace Intel?</a>
 What's Next: While Woods sees a pause happening in the short term, he remains bullish on the market going forward.
"I still think this is early, AI leading the way," Woods said.
With a potential pullback in technology stocks and leaders like Nvidia, Woods is highlighting some other areas that could spell opportunity.
"I like the financials here."
Woods said July 12 is a key date to watch with JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>) reporting quarterly financials and kicking off the sector.
Investors looking for exposure to the financials sector have many ETFs to choose from including the Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
Woods also likes homebuilder stocks with mortgage rates going under 7%. The SPDR S&amp;P Homebuilders ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHB#NYSE">XHB</a>) is a leading homebuilder ETF option for investors.
While the S&amp;P 500, tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), has hit record highs, the Russell 2000 hasn't had the same returns, up less than 1% on the year.
Woods said the Russell 2000 could play catch up to the other indexes in the second half of 2024.
"When it runs, it runs quickly."
The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) tracks the Russell 2000 Index.
Woods said he's not predicting more than one cut the rest of 2024 and investors will likely try to position their portfolios based on the items above.
"People are going to look for value as we start the second half of the year."
Read Next: <a href="https://www.benzinga.com/markets/penny-stocks/24/06/39437829/nvidia-shorts-are-down-big-ai-chipmaker-is-most-shorted-stock-hedge-to-the-overall-market-an">Nvidia Shorts &#8216;Are Down Big&#8217;: AI Chipmaker Is Most Shorted Stock, &#8216;Hedge To The Overall Market And The Tech Sector&#8217;</a>
Photo: Shutterstock

Market Could Take Normal, Routine Pause After Record Highs, Strategist Says: 'Now's The Time If You Have Profits To Book Them'

Wall Street is experiencing a subdued and low volatility trading day Friday, despite the session coinciding with the &#8220;triple witching&#8221; day, with over $5.1 trillion of notional options exposure expiring, surpassing the previous record <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39435525/5-5-trillion-in-options-are-set-to-expire-on-triple-witching-friday-why-nvidia-coul">set in December 2023.</a>
Chipmakers continue to struggle in the aftermath of Thursday&#8217;s sell-off, suggesting that while the wave of profit-taking is easing, there is little sign of new buyers stepping in at these levels.
Nvidia Corp. is down 1.6%, poised to break an eight-week winning streak. The sector benchmark, the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>), is witnessing its worst two-day performance since May 1.
The major indices and sectors remained flat, while biotech stocks showed the strongest performance among industries, with the iShares Biotechnology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBB#NASDAQ">IBB</a>) up 1.9%. Treasury yields were stable, with the 10-year at 4.26%.
On the macro front, S&amp;P Global reported the strongest growth in U.S. private sector activity in two <a href="https://www.benzinga.com/markets/equities/24/06/39434041/us-private-sector-activity-exceeds-estimates-fastest-growth-in-2-years-will-the-fed-welcome-the-">years, surpassing analyst expectations.</a>
Gold saw a decline of 1.4%, reversing Thursday&#8217;s positive performance. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) fell 1.8%, heading for its fifth consecutive session of losses, marking the longest losing streak since October 2023.
Oil prices retreated below $81 per barrel, ending a streak of three consecutive sessions of gains.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,019.94</td>
<td>0.0%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,140.67</td>
<td>0.0%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,464.09</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,694.57</td>
<td>-0.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:55 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.4% lower to $544.76.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;was 0.2% lower to $391.50.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA:&nbsp;<a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) was 0.1% lower to $480.81.</li>
<li>Sector-wise, the&nbsp;Communication Services&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)&nbsp;outperformed, up by 0.4%, while the&nbsp;Financials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) lagged, falling 0.5%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Serepta Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SRPT#NASDAQ">SRPT</a>) rocketed by over 30% after the company announced expanded U.S. FDA approval of ELEVIDYS for Duchenne Muscular Dystrophy <a href="https://www.benzinga.com/quote/SRPT/news" target="_blank" rel="noreferrer noopener">patients ages 4 and above</a>.</li>
<li>Hertz Global Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) rose over 14%, mimicking Thursday&#8217;s move, after the car rental company upsized its bond offering to $1 billion to finance a fleet refresh. </li>
<li>FactSet Research Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDS#NYSE">FDS</a>) rose 4% following stronger-than-expected quarterly earnings. CarMax Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NYSE">KMX</a>) was 1% higher in reactions to quarterly results.</li>
</ul>
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39423623/worlds-biggest-s-p-500-etf-bleeds-outflows-why-isnt-the-market-crashing-corrected">World&#8217;s Biggest S&amp;P 500 ETF Bleeds Outflows: Why Isn&#8217;t The Market Crashing? (CORRECTED)</a>
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Stocks Stall As Chip Sector Struggles To Rebound; Dollar Eyes 7-Week Peak, Gold, Bitcoin Retreat: What's Driving Markets Friday?

US Federal Reserve Says Regulators Identify Shortcomings In 'Living Wills' Of Bank Of America, Citigroup, Goldman Sachs, And JPMorgan Chase; Banks Must Address Issues In Next Resolution Plan Due July 2025; FDIC Finds 'Deficiency' In Citigroup's Plan; Banks Instructed To Fix Derivatives Unwinding And Contingency Planning, Obtain Necessary Foreign Government Actions

The Nasdaq 100 index posted its fourth consecutive session in the green on Thursday, closing up 0.6% at 19,576 points and reaching new all-time highs as tech stocks <a href="https://www.benzinga.com/tech">drive broader market gains</a>.
The S&amp;P 500 also recorded its fourth straight positive day, rising 0.2% to a record closing level of 5,433 points, rebounding from a morning dip caused by <a href="https://www.benzinga.com/markets/equities/24/06/39310762/producer-inflation-rise-less-than-expected-jobless-claims-soar-thursdays-economic-digest">disappointing unemployment claims data.</a>
In the afternoon, traders regained confidence in risky assets after U.S. Treasury Secretary Janet Yellen expressed optimism about continued progress in disinflation. While Yellen noted easing labor market pressures, she emphasized that the job market remains strong.
The market anticipates a rate cut in September with a probability nearing 70%, and is currently pricing in over 50 basis points of cuts by the end of the year, equivalent to two fully priced rate cuts.
Thursday&#8217;s performance among the eleven sectors of the S&amp;P 500 saw technology leading, up 1%, followed by real estate, up 0.5%, both supported by growing expectations of interest rate cuts.
Energy was the biggest laggard, down 0.9%, followed by communication services, down 0.7%.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Sector</th>
<th>1-day %chg</th>
</tr>
</thead>
<tbody>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>1.02%</td>
</tr>
<tr>
<td>Real Estate&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)</td>
<td>0.52%</td>
</tr>
<tr>
<td>Utilities Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>)</td>
<td>0.19%</td>
</tr>
<tr>
<td>Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>0.13%</td>
</tr>
<tr>
<td>Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>)</td>
<td>0.12%</td>
</tr>
<tr>
<td>Materials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>)</td>
<td>-0.03%</td>
</tr>
<tr>
<td>Health Care&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</td>
<td>-0.04%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>-0.10%</td>
</tr>
<tr>
<td>Industrials&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>)</td>
<td>-0.64%</td>
</tr>
<tr>
<td>Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</td>
<td>-0.73%</td>
</tr>
<tr>
<td>Energy&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>)</td>
<td>-0.93%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Nasdaq 100&#8217;s Top 5 Risers </h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Last</td>
<td>Chg %</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>1,679.29</td>
<td>12.29%</td>
</tr>
<tr>
<td>NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>129.37</td>
<td>3.33%</td>
</tr>
<tr>
<td>Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>)</td>
<td>182.33</td>
<td>2.84%</td>
</tr>
<tr>
<td>Exelon Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXC#NASDAQ">EXC</a>)</td>
<td>35.40</td>
<td>1.86%</td>
</tr>
<tr>
<td>Micron Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>)</td>
<td>143.08</td>
<td>1.66%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Nasdaq 100&#8217;s Top 5 Fallers</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Last</td>
<td>Chg %</td>
</tr>
<tr>
<td>Warner Bros. Discovery Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>)</td>
<td>7.31</td>
<td>-6.40%</td>
</tr>
<tr>
<td>MongoDB, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDB#NASDAQ">MDB</a>)</td>
<td>218.14</td>
<td>-4.85%</td>
</tr>
<tr>
<td>Atlassian Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TEAM#NASDAQ">TEAM</a>)</td>
<td>156.04</td>
<td>-4.17%</td>
</tr>
<tr>
<td>Zscaler, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZS#NASDAQ">ZS</a>)</td>
<td>181.00</td>
<td>-4.15%</td>
</tr>
<tr>
<td>Sirius XM Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIRI#NASDAQ">SIRI</a>)</td>
<td>2.53</td>
<td>-3.93%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Risers</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Last</td>
<td>Chg %</td>
</tr>
<tr>
<td>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>)</td>
<td>871.16</td>
<td>12.45%</td>
</tr>
<tr>
<td>Broadcom Inc.</td>
<td>1,678.90</td>
<td>12.26%</td>
</tr>
<tr>
<td>Arista Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANET#NYSE">ANET</a>)</td>
<td>331.67</td>
<td>6.53%</td>
</tr>
<tr>
<td>Incyte Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INCY#NASDAQ">INCY</a>)</td>
<td>62.68</td>
<td>4.57%</td>
</tr>
<tr>
<td>Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>)</td>
<td>113.36</td>
<td>4.27%</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">S&amp;P 500&#8217;s Top 5 Fallers</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Last</td>
<td>Chg %</td>
</tr>
<tr>
<td>Paramount Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PARA#NASDAQ">PARA</a>)</td>
<td>10.35</td>
<td>-6.92%</td>
</tr>
<tr>
<td>Warner Bros. Discovery Inc. </td>
<td>7.31</td>
<td>-6.40%</td>
</tr>
<tr>
<td>Etsy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ETSY#NASDAQ">ETSY</a>)</td>
<td>60.15</td>
<td>-4.93%</td>
</tr>
<tr>
<td>Generac Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GNRC#NYSE">GNRC</a>)</td>
<td>136.17</td>
<td>-4.58%</td>
</tr>
<tr>
<td>Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>)</td>
<td>108.23</td>
<td>-3.92%</td>
</tr>
</tbody>
</table>
</figure>
Now Read: <a href="https://www.benzinga.com/etfs/specialty-etfs/24/06/39317123/goldman-sachs-reaffirms-september-rate-cut-forecast-downplays-feds-hawkish-surprise">Goldman Sachs Reaffirms September Rate Cut Forecast, Downplays Fed&#8217;s &#8216;Hawkish Surprise&#8217;</a>
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Nasdaq 100, S&P 500 Close At Record Highs As Tech Stocks Reclaim Dominance: Thursday's Gainers & Losers

Treasury Secretary Yellen Expresses Concerns Over Smaller Banks And Sanctions; Big Finance Firms Striving To Comply With Russia Sanctions; Large Chinese Banks Value Correspondent Relationships; Smaller Banks Aim To Maintain Dollar Access

Visa Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>) has relaunched its Visa SavingsEdge program, aiming to offer better value to small businesses (SMBs) in the <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39309492/visa-relaunches-savingsedge-with-new-offers-to-deliver-greater-value-to-small-businesses" rel="noreferrer noopener">United States and Canada</a>.
For over a decade, Visa SavingsEdge has provided eligible Small Business cardholders with savings, tools, and resources to support their growth, the company said in its press release.
The latest enhancements introduce a dynamic platform with new offerings and features to facilitate smarter spending and saving.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/05/39092758/mastercard-looks-to-fight-cyber-threats-whats-going-on-with-credit-card-companys-shares-thursday" rel="noreferrer noopener">Mastercard Looks To Fight Cyber Threats, All You Need To Know</a>
The Visa SavingsEdge platform includes a refreshed website with enhanced features and functionality, hundreds of additional merchant offers through Instant Coupons and Cashback Offers, and real-time notifications for cardholders earning cashback on qualifying transactions. A cashback tracker also allows cardholders to monitor their savings through the program.
In May, Visa launched <a href="https://www.benzinga.com/fintech/24/05/38873362/visa-rolls-out-new-tech-rivaling-apple-pay-teams-up-with-affirm-for-easier-transactions" target="_blank" rel="noreferrer noopener">facial recognition payments</a> like Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) Apple Pay likely to work across all browsers and mobile devices.
Analysts projected <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38795410/visa-mastercard-have-255t-opportunity-analyst-says-generative-ai-could-drive-upside">a $255 trillion opportunity</a> for companies like Visa and Mastercard Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MA#NYSE">MA</a>) supported by their significant tech investments, including generative AI.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13091625/newplot-26.png" alt="" class="wp-image-386771" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13091625/newplot-26.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/13091625/newplot-26-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Visa stock gained over 21% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;iShares U.S. Financial Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYG#NYSE">IYG</a>) and SPDR Select Sector Fund &#8211; Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>).
<h2 class="wp-block-heading">Visa Stock Prediction For 2024</h2>
Visa (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>)&#8217;s revenue growth in FY23 was 11.41%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company&#8217;s future prospects.
Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at -0.2%, growing 2.2% from last year. The unemployment rate was most recently reported as 4.0%.
An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Visa stock. For real time economic data and breaking market updates, <a href="https://pro.benzinga.com/">check out Benzinga Pro. Try it for free.</a>
How does this stack up against Visa's peers?
Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. Visa operates in the Financials sector. The stock has experienced average annual growth of 4.95% compared to the -18.7% average of its peer companies. This is below the broader sector movement of Visa.
Price Action: V shares are trading higher by 0.19% at $270.87 at the last check on Thursday.
Image from Shutterstock

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Visa Unveils Major Upgrades to SavingsEdge for Small Business Growth: Here's What's New

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