Financial sector exchange traded funds were deep in the red Thursday amid speculation Europe’s debt stress may trigger another credit shock similar to the failure of Lehman Brothers.

Financial Select Sector SPDR Fund (NYSEArca: XLF) was down nearly 5% in recent action. Bank of America (NYSE: BAC), a top holding and the largest U.S. bank, fell 7%.

The Dow was off more than 400 points as a disappointing Philly Fed report and existing home sales further weighed on sentiment.

The financial ETF was trading slightly above its 52-week low set earlier this month.

The fund was down 18% year to date heading into Thursday’s session.

Financial Select Sector SPDR Fund

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