Benzinga·2026-01-15 19:25Core Viewpoint - Financial-sector ETFs have shown resilience, rebounding due to gains in major Wall Street banks despite policy uncertainties related to credit card interest rates [1][2]. Group 1: ETF Performance - The State Street Financial Select Sector SPDR ETF (XLF) is trading near recent highs, supported by significant gains in shares of JPMorgan Chase, Goldman Sachs, Morgan Stanley, and Citigroup [2]. - The XLF ETF experienced a boost from its heavy exposure to major banks, while other ETFs like the Vanguard Financials ETF (VFH) and iShares U.S. Financials ETF (IYF) also benefited from strong performances in diversified banking and capital markets [4]. - The broader financial ETFs gained almost 2% on Thursday, indicating their ability to absorb short-term headline risks [6]. Group 2: Market Influences - President Trump's comments on capping credit card interest rates at 10% created initial volatility in bank stocks, but investors refocused on the strong earnings and improving fundamentals of large-cap financials [3]. - Optimism in the financial sector has been driven by robust results from Wall Street's investment banking activities, with Goldman Sachs and Morgan Stanley reporting significant profit growth and record revenues [5]. - Major financial institutions are seen as stabilizing elements in the market, with expected deals and increased trading revenues potentially acting as catalysts for financial ETFs [7].