Higher long-term interest rates are killing stocks that act as bond equivalents, but banks continue their climb
A jump in long-term interest rates has been unkind to US stocks that function as bond equivalents, such as utilities and real estate investment trusts, both down today by about 1%. Dividend-payers in the consumer staples sector, such as Proctor and Gamble and Coca-Cola, also are among the day’s worst performers on the S&P 100.
Banks, though, continued to climb through the day, with Bank of America leading the S&P 100 with a 3.2% gain. Not much else happened today except for repricing of market sectors according to interest rate exposure.