Shares of banks and other financial institutions fell sharply amid fears that the Federal Reserve will raise rates and further tighten financial conditions.
The SPDR Regional Bank exchange-traded fund slid by more than 3% after Fed Governor Philip Jefferson, the official who has been nominated to serve as the central bank's second-in-command, said any decision to hold interest rates steady should not be interpreted as an end to rate increases.
A former top JPMorgan Chase executive, Jes Staley, said in legal documents that for years he communicated with Chief Executive Jamie Dimon about the bank's business with convicted sex offender Jeffrey Epstein, contradicting prior statements from Mr. Dimon.
Franklin Resources shares fell after the money manager agreed to buy rival Putnam Investments from Canadian insurance firm Great-West Lifeco for about $1.3 billion in cash and stock.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-31-23 1744ET
