Shares of banks and other financial institutions saw minor declines in the market, although not as substantial as the broader market. This comes as Treasury yields continue to stabilize after recent fluctuations.
The benchmark 10-year note and 2-year Treasury note both experienced small decreases on Tuesday, maintaining a level somewhere in the middle of their highest and lowest points this year.
Despite this temporary stability, a strategist warns that there may be more fluctuations ahead for Treasury yields before the year concludes.
Looking ahead to December, Michael Wilson, chief U.S. equity strategist at brokerage Morgan Stanley, anticipates potential near-term volatility in both rates and equities. However, he also notes the possibility of more optimistic trends emerging for equities, along with market expectations of a potential "January Effect."
Concerns over China's real estate crisis also contributed to market unease. Major Chinese stock indexes slumped to approximately one-year lows in response to warnings from credit-rating agency Moody's Investor Service. Analysts highlighted the potential for a prolonged real-estate crisis to impact the credit quality of China's sovereign debt.