New York, Jan 11, 2026, 13:17 EST — Market closed
- Financial Select Sector SPDR Fund (XLF) dipped 0.3% on Friday as investors positioned ahead of bank earnings.
- This week brings earnings from JPMorgan, Bank of America, and Citigroup, with U.S. inflation figures due Tuesday.
- Loan demand, credit card delinquencies, and 2026 rate cut guidance are under traders’ scrutiny.
Financial services stocks start the week facing two key drivers: upcoming big-bank earnings and a new U.S. inflation report.
The Financial Select Sector SPDR Fund (XLF), often seen as a benchmark for U.S. financial stocks, closed Friday 0.3% lower at $55.73.
The reason this matters now is straightforward. Bank earnings offer the first major glimpse into profit growth this quarter and reveal credit conditions in the real economy. Inflation figures, meanwhile, have the power to shift expectations for the Federal Reserve and its interest rate trajectory.
Small rate changes can trigger large swings in net interest income for lenders — the difference between what a bank earns on loans and what it pays on deposits — directly impacting their earnings power.
On Friday, JPMorgan Chase dipped 0.2%, and Bank of America dropped 0.7%. Goldman Sachs inched up 0.4%, with Morgan Stanley climbing 0.9%. Visa and Mastercard ended the day down.
The calendar is packed. JPMorgan reports Tuesday, then Bank of America, Wells Fargo, and Citigroup all come Wednesday. Morgan Stanley and Goldman Sachs follow on Thursday, with several other financial firms scheduled later in the week. (Investopedia)
Investors are watching closely for signals that often slip under the radar: stress in credit cards and consumer loans, shifts in deposit pricing, and whether deal fees alongside trading revenue hold their pace heading into year-end.
Some investors see markets as steady, even as earnings and policy headlines dominate the tape. Michael Arone, chief investment strategist at State Street Investment Management, called the market’s foundation “solid” but warned it might be “underappreciating” triggers that could spike volatility. Jack Janasiewicz, portfolio manager at Natixis Investment Managers, pointed to banks as being “on the front lines.” Meanwhile, Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds, flagged inflation readings as “critical” for gauging how much the Fed can ease. (Reuters)
Tuesday’s Consumer Price Index is the key. If the number comes in hotter than expected, yields will probably climb, putting risk appetite under pressure. A softer reading, on the other hand, might bolster arguments for further rate cuts—though it would also muddy the waters for lending margins.
XLF’s top holdings feature Berkshire Hathaway, JPMorgan, Visa, Mastercard, and Bank of America, making the fund vulnerable to shifts in bank forecasts and payments activity. This ETF targets the financial sector of the S&P 500. (Yahoo Finance)
The setup works both ways. Should banks report climbing delinquencies or a slump in loan demand, or if CPI rekindles inflation fears, financial stocks could retreat sharply after their earlier gains this year.
Tuesday’s CPI report and JPMorgan’s earnings will be in focus next. Then comes a slew of bank results midweek, along with fresh data on credit quality and interest rate forecasts. (Investopedia)
