With a gain of 1.72%, the S&P 500 financial index led the gainers among the 11 major S&P 500 sectors. The S&P 500 financial index crossed 470 last week.
With the addition of $475 billion, ETF inflows have broken all of the records in 2017. The previous record was $287.5 billion in 2016.
Goldman Sachs (GS) said that US tax reform will cut its earnings for 4Q17 by ~$5 billion mainly due to the repatriation tax.
The financials sector strongly contributed to the benchmarks’ rise in 2017. The S&P 500 financial index rose 20% during the year.
ETF inflows, which have continued unabated since March, finally hit a roadblock last week. FactSet data showed that ETFs saw outflows worth $1.30 billion.
Office of the Comptroller of the Currency head Joseph Otting said that bitcoin doesn’t pose a threat to the US banking system’s stability.
US large-cap financials (XLF) outperformed large-cap technology stocks in November and December. Financials maintained the momentum last week.
ETFs saw inflows worth $30 billion, which brings the year-to-date inflows to $466 billion. The total inflows will likely cross $500 billion this year.
In the past year, the total deposits for the five largest US banks—JPMorgan Chase, Wells Fargo, Bank of America, Citibank, and US Bancorp—grew 4.3%.
Last week, financial stocks fell after the Fed’s rate hike decision. Investors might have expected a more hawkish Fed.