Industry update: Financial stocks slide as 10-year Treasury yield climbs back above 3% on expectations of Fed hawkish comments

Financial stocks were down sharply in afternoon trading, with the NYSE Financial Index slipping 1.6% while the SPDR Financial Select Sector ETF (XLF) was down 1.8%.

The Philadelphia Housing Index fell 2.1% and the SPDR Real Estate Select Sector ETF (XLRE) fell 1.6%.

Bitcoin fell 0.5% to $21,328, while the yield on 10-year U.S. Treasuries rose 4.8 basis points to 3.037% ahead of Jerome Powell’s speech later this week, in which the Federal Reserve Chairman is expected to stress the need for the central bank to continue raising interest rates to contain inflation.

In company news, Cannae Holdings (CNNE) fell 1.9% after the investment firm announced it would acquire an $84 million stake in Computer Services (CSVI), a publicly traded fintech that agreed Monday to be acquired by Centerbridge Partners and Bridgeport Partners. through an all-cash transaction valued at $1.6 billion. The $58 per share offer for the target company represents a 53% premium to Friday’s closing price. The shares of IT services increased by almost 50%.

BGC Partners (BGCP) was down 0.1% after the financial and technology brokerage firm announced on Monday that it had won a lawsuit challenging the company’s 2017 acquisition of Berkeley Point Capital. union pensioners claimed BGC was to take on hundreds of millions of dollars in debt as part of the deal, while BGC chief executive Howard Lutnick and Cantor Fitzgerald “extracted nearly $1 billion in cash of BGC for their personal benefit,” but a Delaware Vice Chancellor of the Chancery Court ruled that the purchase was entirely fair.

White Mountains Insurance Group (WTM) rose 3.6% after Monday began a modified Dutch auction bid for up to $500 million of its common stock priced at $1,250-$1,400 per share in cash, reflecting up to 13.8% of its outstanding shares. The takeover bid runs until September 20, unless extended or terminated early.

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