“The outlook continues to deteriorate,” Yelena Shulyatyeva, a U.S. economist at BNP Paribas, said. “It’s not good for confidence when people see their main asset, their homes, decline in value. Our best-case scenario is we’ll muddle through.”

SPDR KBW Bank ETF (NYSEArca: KBE) and Financial Select Sector SPDR (NYSEArca: XLF) are among the largest financial sector ETFs.

SPDR KBW Bank ETF

Max Chen contributed to this article.

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