TFC - Financial stocks gain after Powell renonomination chances of '22 rate hike increase

The Financial Select Sector SPDR ETF (NYSEARCA:XLF) gains 1.6%, with banks moving up strongly, after Federal Reserve Chairman Jerome Powell gets nominated for a second term and Fed Governor Lael Brainard is nominated as vice chair. After the announcement, the 10-year yield rises almost 5 basis points to 1.60%; the shorter-end gains even more, rises ~5 bps to 0.57%. The SPDR S&P Bank ETF (NYSEARCA:KBE) climbs 2.2% while the SPDR S&P Regional Banking ETF (NYSEARCA:KRE) drives up 2.3%. Powell's renomination providing continuity in the financial markets, bolsters investors' confidence in the financial sector. The CME Fed Watch tool puts the probability of a rate hike in June 2022 to over 75%, with a 25-50 bps rate increase given a 46.6% probability, a 50-75 bps hike given a 25.9% probability, and a 75-100 bps jump assigned a 4.5% chance. The probability of a 50-75 bps increase rose from the 17.9% probability it had on

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Financial stocks gain after Powell renonomination, chances of '22 rate hike increase