US financial stocks: banks held up better than the market as yields eased

what happened

Seeking Alpha's weekly wrap of US financial stocks shows a sharp reversal after the 2026 midterm elections: the mood turned from optimism to the market's worst day in more than a year and a half. All three major indexes posted heavy weekly losses as a technology sell-off and worries over AI policy weighed on sentiment. The State Street Financial Select Sector SPDR ETF still gained 1.15% over the week, closing at $57.16, while the 10-year US Treasury yield eased to 4.87% from 4.93%.

Berkshire Hathaway led megacap financials higher, rising 5.24% and 5.03% to $570.89 and $856,612.00 respectively, ahead of its scheduled third-quarter report, which showed operating earnings of $12.7 billion, down 5.8% year over year. Mastercard and Visa added 2.30% and 2.19%. On the downside, Goldman Sachs fell 3.21% and Mitsubishi UFJ Financial slipped 2.74%.

According to S&P Global Market Intelligence, bank stocks declined but outperformed the broader market. StoneX Managing Director Brett Rabatin told S&P that lower long-term rates ease the impact of accumulated other comprehensive income on bank deal marks. Stifel analyst Brian Gardner linked the late-week reversal to investor expectations that the war with Iran could last longer than expected.

why it matters

For investors, the week showed that sector performance can diverge sharply from the index: banks and card networks held up better than the market, while insurers and technology-linked names fell on earnings and the sector rout. Truist analysts noted that control of Congress does not really move the needle for banks, since the favorable regulatory backdrop is expected to last at least two more years.

market impact

US banks and card payment firms: held up better than the index as lower yields eased pressure

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