The disappointing report on new home sales halted the rally in financials, but investors remain optimistic in light of the Fed’s decision to maintain low interest rates until late 2014, reports Richard Leong for Reuters.
“All in all, it does seem like a little bit of profit-taking on the weak housing data, but we’ve had a good run and maybe it’s simply time for a little bit of consolidation,” Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research, said. “We don’t think it’s a major peak, just a little bit of a break here.”
Looking ahead, the financial sector will have to wait on the outcome of Greece’s plans to negotiate with private investors to avoid a default that could bring the Eurozone’s financial sector back into crisis mode.
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Max Chen contributed to this article.