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Markets Look Past DC Drama as Bank Earnings and Charts Take Center Stage

Investing.com Logo Investing.com By Mike Zaccardi, Cfa, Cmt
Markets Look Past DC Drama as Bank Earnings and Charts Take Center Stage

Markets are shifting focus from political drama surrounding Fed Chair Powell to bank earnings season. The 10-year Treasury yield broke above 4.20%, signaling a potential move to 4.45%. Financial sector ETFs XLF and KRE have surged significantly, and major banks including JPMorgan, Bank of America, Citigroup, and Wells Fargo are reporting Q4 earnings this week. Technical charts show constructive patterns for financials despite recent volatility in credit services stocks following Trump's credit card interest rate cap proposal.

Insights
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Major bank reporting Q4 earnings Tuesday; strong sector performance but show-me story after significant pre-earnings run-up of 11-17% in financial ETFs