Shares of banks and other financial institutions rose alongside Treasury yields. A steady increase in Treasury yields bodes well for bank profits.
Recent fears of a sudden shift in central-bank policy have intermittently weighed on the financial sector, but strategists say a gradual pivot would be a favorable environment for the financial sector.
"If the U.S. economic recovery continues to accelerate to a sufficiently robust level into the summer, the Fed is expected to signal rolling back its asset purchases later this year," said strategists at money manager UBS Global Wealth Management, in a note to clients.
"But the actual tapering would only take place in 2022, and we believe markets have largely priced in this expectation."
Carl Icahn holds a roughly $400 million, or 1%, stake in Allstate and supports the insurer's moves to cut costs and sell more products directly to consumers, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-26-21 1659ET
