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Sector Update: Financial Stocks Mixed Wednesday Afternoon

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Financial stocks were mixed in Wednesday afternoon trading, with the NYSE Financial Index up 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) fractionally lower.

The Philadelphia Housing Index was falling 1.9%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) rose 0.8%.

Bitcoin (BTC-USD) was easing 0.1% to $63,442, and the yield for 10-year US Treasuries was slightly lower at 4.676%.

In economic news, the consumer price index rose 3.4% last month from a year earlier, decelerating from 3.5% in June and marking the slowest pace of growth since March, data from the Bureau of Labor Statistics showed. The annual print matched the average forecast in a Bloomberg survey. Core inflation, which excludes volatile food and energy items, eased to 2.5%, also as expected, from June's 2.6%.

In sector news, FIFA World Cup 2026 wagers helped double predictions market platform Kalshi's revenue to a more than $4 billion annualized rate last month, The Information reported. Kalshi is in late-state talks to raise fresh funding at a valuation of about $40 billion, the unnamed source told the news outlet, adding that the firm's operating expenses reached $300 million for June.

In corporate news, Bank of America (BAC) plans to invest $250 billion in US infrastructure through its Critical Infrastructure Finance Initiative, the company said Wednesday. The investment will be made through lending, investments, capital markets and advisory transactions over an 18-month period from Jan. 1, 2026 through July 4, 2027, the company said. Bank of America shares were up 0.9%.

Goldman Sachs (GS) said Wednesday it has agreed to buy exchange-traded fund provider Neos Investments for up to $2.25 billion in cash and equity. Goldman shares were up 0.4%.

Blackstone (BX) is considering abandoning plans to raise about $3 billion of debt to return some cash to investors, Bloomberg reported. The firm has struggled to find a buyer for the equity portion of the deal, which is typically the riskiest part, Bloomberg reported. Separately, Blackstone and La Caisse are leading a 2.5 billion Canadian dollar ($1.8 billion) minority equity investment in Air Canada's Aeroplan loyalty program, valuing the business at CA$10 billion, the airline said Tuesday. Blackstone shares were down 1%.

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