New York, Feb 8, 2026, 13:45 EST — The market has shut its doors for the day.
- The Financial Select Sector SPDR Fund (XLF) closed out Friday in the green, lifted by gains among major U.S. banks.
- With rate-cut wagers picking up again and the U.S. data calendar reshuffled, those two forces are steering the sector now.
- Bank stocks are waiting on two major triggers: the delayed U.S. January jobs numbers and CPI.
Financial services names in the U.S. caught a bid going into the weekend, with the Dow breaking past 50,000 for the first time. Goldman Sachs rallied 4.3%, fueling the move. “What’s driven it recently has been the broadening that we have seen in the market … other than just the tech, AI trade,” said Horizon Investment Services CEO Chuck Carlson. (Reuters)
The pace doesn’t let up. J.P. Morgan Wealth Management noted the January U.S. jobs report is now slated for Feb. 11, with CPI inflation data set to land Feb. 13, after a short government shutdown delayed both releases. (Chase)
That’s a double whammy for financial services stocks. Rate expectations push bond yields, directly hitting bank lending profits. They also drive demand—credit cards, trading products, the whole lot gets affected.
The Financial Select Sector SPDR Fund ended Friday up 1.8% at $54.26. The KBW Nasdaq Bank Index tacked on close to 2.7%. JPMorgan shares finished with a 3.9% gain, Bank of America advanced 2.9%, and Goldman added around 4.3%, market data showed. (Nasdaq Global Index Watch)
Strong moves in the broader market, with the S&P 500 up 1.97% and the Nasdaq advancing 2.18% on Friday, as chip stocks surged—investors betting AI spending keeps ramping up. The Dow tacked on 2.47%. “This trade has been volatile… but I think there’s enough evidence that there’s real demand for AI products,” said Ross Mayfield, investment strategy analyst at Baird. (Reuters)
Shares tied to crypto took off too. Robinhood surged 14%, while Coinbase added 13%, tracking bitcoin’s move back above $70,000, according to the Associated Press. (AP News)
Traders have started to shift their bets again on rate cuts. Fed funds futures now suggest a 22.7% chance of a quarter-point cut in March—more than double yesterday’s 9.4%—after January’s layoff announcements surged to a 17-year high for the month, according to Reuters. (Reuters)
Federal Reserve Vice Chair Philip Jefferson took a careful line on inflation Friday, even as he described the outlook as constructive. “The current policy stance is well positioned to address the risks to both sides of our dual mandate,” Jefferson said. The Fed kept its policy rate unchanged at 3.50%-3.75% last week. (Reuters)
Plenty of headlines landed for individual players. Cboe Global Markets came in above profit forecasts thanks to surging options activity, yet the stock slipped roughly 2.3% early. Reuters said Cboe’s looking at prediction market-linked products—competitors CME, Nasdaq, and ICE have all flagged hefty trading volumes recently. (Reuters)
Rate bets weren’t just a U.S. story this day. London’s major banks—Lloyds, NatWest and Barclays—all posted gains, adding anywhere from 0.9% to 2.8% on Friday. The moves came after the Bank of England left the door open to potential rate cuts if inflation continues to slow, according to Reuters. (Reuters)
The rebound for the sector isn’t a sure thing. A hotter-than-expected CPI or a surprise in the delayed jobs report could spark a jump in Treasury yields—and quickly unravel rate-cut bets. That’s the kind of setup that often rattles bank stocks and sends risk appetite sliding.
Looking ahead, the U.S. January employment numbers hit on Wednesday, Feb. 11, with the January CPI landing Friday, Feb. 13. That pair of releases could quickly define where financial services stocks go next, as investors weigh both for cues about the Fed’s March play.
