The sell-off in financial ETFs was also likely driven by concerns over the looming fiscal cliff.
Obama’s re-election “means plenty of uncertainty surrounding the fiscal cliff,” said John Hardy, currency strategist at Saxo Bank, in a MarketWatch report Wednesday.
“You don’t have to be a genius to figure out that financials would clearly suffer from the U.S. economy falling off the fiscal cliff,” added Keefe Bruyette & Woods analysts in a note Wednesday. “Given the high betas in financial stocks, the group would clearly underperform the broader market.”
Financial Select Sector SPDR
