Shares of banks and other financial institutions fell amid doubts about the outlook for fiscal and monetary stimulus.
Treasury yields rose sharply, unsettling global financial markets. One brokerage said the size of the ultimate deal on a massive budget reconciliation bill will shape the course forward for Treasury yields.
"September's $1 trillion bipartisan infrastructure plus $3.5 trillion Build Back Better reconciliation = $4.5 trillion or more than 20% of GDP," said strategists at brokerage Bank of America Global Research, dubbing the measures "epic U.S. fiscal stimulus."
The size of the budget reconciliation deal will determine the course of yields for the next three-to-six weeks, the strategists said. Anything over $2 trillion would bring higher yields "as stimulus shores up weakening U.S. consumption & heightens inflation," the BofA strategists said.
Separately, Bank of America said it's shaking up its top leadership team, installing new finance, technology and legal chiefs and adding three women to its senior ranks.
Alastair Borthwick, who most recently ran commercial banking, will become BofA's chief financial officer, with incumbent Paul Donofrio shifted to a position focused on sustainable finance.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
09-10-21 1736ET
