WS #14789
The financial sector is under significant pressure as the Fed's rate hike pushes junk bond yields above 15%, signaling tightening credit conditions. Wells Fargo has lowered price targets for Goldman Sachs and Morgan Stanley, while also downgrading Costco, reflecting concerns over consumer spending and credit quality. The XLF ETF is poised for a third consecutive week of losses, indicating sustained institutional bearishness on the financials and consumer discretionary sectors.
Financial Sector Pressure
The financial sector is under significant pressure as the Fed's rate hike pushes junk bond yields above 15%, signaling tightening credit conditions. Wells Fargo has lowered price targets for Goldman Sachs and Morgan Stanley, while also downgrading Costco, reflecting concerns over consumer spending and credit quality. The XLF ETF is poised for a third consecutive week of losses, indicating sustained institutional bearishness on the financials and consumer discretionary sectors.