In the financial realm, notable gains were led by a Central Asia-focused financial services company and a global electronic trading platform. Conversely, a Chinese financial services platform and a Colombian bank faced substantial declines.
Amid rising bond yields, financial stocks underperformed the broader market. The week witnessed mortgage rates reaching a 22-year peak, as per Bankrate. During this period, the Financial Select Sector SPDR S&P ETF (NYSEARCA:XLF) dipped 2.8%, slightly outperforming the S&P 500’s 2.1% drop.
Additionally, the week saw credit card issuers reporting delinquency rates climbing back to prepandemic levels in July.
Lufax Holdings (NYSE:LU) marked the most significant decline by sliding 14% by the week ending on August 18.
Grupo Aval Acciones y Valores (NYSE:AVAL), a bank based in Bogota, Colombia, faced an 11% drop due to lackluster Q2 earnings that raised concerns about asset quality trends. J.P. Morgan downgraded the stock to a Neutral rating.
Mortgage lender Rocket Companies (NYSE:RKT) experienced a 10% decline.
Discover Financial (NYSE:DFS) fell by 9.9% following the abrupt departure of its CEO amidst regulatory concerns.
Argentinian bank Banco Macro (NYSE:BMA) saw a 9.8% dip.
On a positive note, Freedom Holding (NASDAQ:FRHC), a Kazakhstan-based financial services company, emerged as a top gainer, surging by 16%. Notably, this was despite a new short report from Hindenburg Research, which Freedom dismissed, deeming the claims baseless.
MarketAxess Holdings (NASDAQ:MKTX) gained 6.0% over the week.
Progressive (NYSE:PGR), reporting July results, experienced a 4.8% increase. The company highlighted a 20% year-over-year rise in net premiums earned to $5.65 billion.
BRP Group (NASDAQ:BRP), specializing in insurance marketing and sales, witnessed a 3.9% rise.
Lastly, the financial services network StoneX (NASDAQ:SNEX) closed the week with a 2.2% gain.
Read : U.S. Stocks Decline as S&P 500 Faces Third Weekly Loss Amid Rising Yields and China Concerns
