The largest exchange traded fund for financial stocks rose slightly in Tuesday’s premarket as top holdings Citigroup (NYSE: C) and Bank of America (NYSE: BAC) each added about 1% before the bell.
Financial Select Sector SPDR Fund (NYSEArca: XLF) fell nearly 2% on Monday as worries over Friday’s dismal jobs report spilled into the new week.
The $6.8 billion ETF is down nearly 10% over the past three months as bank stocks have been hit by Europe’s debt crisis and signs the economy is cooling.
The banking sector is also wrestling with uncertainty over new rules and capital requirements in the aftermath of the credit meltdown.