S&P 500 Gains Get Hit as Banks & BTC Suffer – US Market Wrap

Despite gains in technology shares, the stock rally faded as banks dragged down the broader market. Bitcoin fell following a news report that federal investigators are looking into cryptocurrency firm Tether.

The S&P 500 was little changed after rising nearly 1% earlier. Banks were hit, with New York Community Bancorp falling 8.3% on a weaker outlook. Goldman Sachs dropped 2.3%, while JPMorgan fell 1.2%. Crypto stocks fell after the Wall Street Journal reported that the US is investigating Tether for potential violations of sanctions and anti-money laundering regulations. A gauge of the “Magnificent Seven” megacaps posted its best back-to-back gains since February. Treasuries made small moves as investors remained cautious ahead of key events.

As earnings season began, traders also looked to the US presidential election and key economic data, such as next week’s jobs report, for clues on the scope of Federal Reserve rate cuts.

The S&P 500 experienced its first week of losses since early September. The Nasdaq 100 gained 0.6%. The Dow Jones Industrial Average declined 0.6%. The KBW Bank Index fell 1.4%. A “Magnificent Seven” index increased by 1.3%.

Bitcoin dropped 2%. Treasury 10-year yields increased three basis points to 4.24%. Oil prices rose as traders focused on the risk of escalation in the Middle East conflict and a slew of other potentially pivotal market drivers.