An exchange traded fund following U.S. financial stocks dropped 6% on Wednesday as Bank of America (NYSE: BAC) shares fell under $7 again on renewed selling.
Bank of America was Wednesday’s most active stock by share volume. The shares fell 11% after Tuesday’s bounce.
B. of A. has plunged in the wake of American International Group (NYSE: AIG) suing bank seeking to recover over $10 billion in mortgage-related losses. [Financial ETFs Tumble]
Financial Select Sector SPDR Fund (NYSEArca: XLF) was down 6% at last check and was the market’s third-most-active security by share volume on Wednesday.
The financial sector ETF was off 17.4% year to date as of Aug. 9, according to Morningstar. Bank of America accounts for 4.6% of the portfolio.
Financial Select Sector SPDR Fund
The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.