Core Insights - The stock market is experiencing renewed optimism due to a resurgence in the artificial intelligence rally, but the financial sector has not fully participated in this rebound, leading to a stock picker's market [3] Financial Sector Overview - Large-cap financial stocks like JPMorgan Chase and Goldman Sachs have performed well in 2025, but investors need to be cautious and avoid stocks that may disappoint during the holiday season [4] - The Federal Reserve's ongoing rate reductions could diminish the high net interest income that banks have enjoyed, potentially impacting their profitability [4][5] Economic Conditions - A cycle of rate reductions typically aligns with a weakening economy, and while consumer spending remains robust, there are emerging issues in the job and housing markets [5] - The uneven impact of these economic headwinds across the financial sector emphasizes the importance of selecting strong performers and avoiding weaker stocks [5] Specific Stock Analysis - Interactive Brokers is facing challenges due to falling interest rates, which threaten its net interest income and overall earnings [6] - Technical indicators for Interactive Brokers, Raymond James, and MetLife show bearish trends, indicating potential vulnerabilities as they enter 2026 [6]