(Bloomberg) — A rally in stocks faded as banks dragged down the broader market despite a surge in tech shares. Bitcoin slumped after a news report that federal investigators are probing cryptocurrency firm Tether.
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Equities were little changed, following an advance that earlier drove S&P 500 up almost 1%. Banks got hit as New York Community Bancorp tumbled 8% on a weaker outlook. Goldman Sachs Group Inc. dropped 2.4% and JPMorgan Chase & Co. lost 1.6%. Crypto shares got hammered after the Wall Street Journal said the US is investigating Tether for possible violations of sanctions and anti-money-laundering rules. A gauge of the “Magnificent Seven” megacaps was on track for its best back-to-back jump since April. Treasuries barely budged as caution prevailed ahead of key events in coming weeks.
As the earnings season rolled in, traders are also geared up for the US presidential election and the key economic data, including next week’s payrolls report, for clues on the scope for Federal Reserve rate cuts.
“Investors are still very cautious as we approach a pivotal couple of weeks,” said Henry Allen at Deutsche Bank. “So there’s been a reluctance to push the rally much further before we get some clarity on those, all of which will play a crucial role in shaping the outlook as we move into next year.”
The S&P 500 was little changed. The Nasdaq 100 added 0.6%. The Dow Jones Industrial Average fell 0.7%. The KBW Bank Index fell…
