Financial stocks slide this week amid surge in long-end Treasury yields (NASDAQ:FCFS)

The biggest financial and markets story of the week was the surge in long-end Treasury yields. The 10-year Treasury yield closed on Friday at 4.94%, up from 4.61% a week ago. On Thursday, the benchmark yield reached a session high of 5%, its highest level since July 2007.

With pressure from “higher-for-longer” rates, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) dropped 3.0% for the week ended Oct. 20, steeper than the S&P 500’s 2.5% decline.

With banks posting earnings this week, the SPDR S&P Bank ETF (NYSEARCA:KBE) dropped 3.1%, while regional banks fared better. The SPDR S&P Regional Banking ETF (NYSEARCA:KRE) edged up 0.1%.

Shanghai-based fintech, Qifu Technology (NASDAQ:QFIN), fell the most of any U.S. traded financial stock (with market cap over $2B) this week, sinking 15%.

Zions Bancorporation (NASDAQ:ZION), the Salt Lake City, Utah-based regional bank, saw its stock drop 13% after it posted weaker-than-expected Q3 earnings as higher interest rates increased its deposit and funding costs.

Lufax Holding (NYSE:LU), another Shanghai-based fintech, slid 10%;

Birmingham, Alabama-based regional bank Regions Financial (NYSE:RF) slumped 9.9% as the bank’s Q3 earnings missed the Street consensus, and net interest income is expected to stay under pressure in H1 2024.

Kazakhstan-based Freedom Holding (NASDAQ:FRHC), a stock that’s often volatile, fell 9.6% for the week.

The financial stocks that climbed the most during the week were a disparate bunch.

Brazil-based digital banking platform Nu Holding (NYSE:NU), known as NuBank, gained 5.3% on the week as the Brazil real (BRL:USD) strengthened 0.8% against the U.S. dollar. YTD, the BRL has risen 5.9% against the greenback.

Nasdaq (NASDAQ:NDAQ) climbed 2.5% after its Q3 earnings and revenue topped Wall Street expectations and it reported that the antitrust review of its Adenza acquisition has been completed.

F&G Annuities (NYSE:FG) rose 2.5%.

Allstate (NYSE:ALL) increased 2.4% in the week that activist hedge fund Trian reportedly took a stake in the insurer.

Pawn shop operator FirstCash Holdings (NASDAQ:FCFS) rose 2.1%, rounding out the top five financial stocks of the week.