Key Highlights

● Regional bank stocks fell modestly as yields climbed.

● Several lenders reported earnings misses.

● Not every financial stock struggled the same day.

● A steeper yield curve can eventually help lending margins.

Regional bank stocks lost ground as a jump in long-term Treasury yields weighed on the group, and several lenders posted disappointing quarterly reports. The decline came even as the broader financial sector rose and the major indexes posted modest gains.

The Federal Reserve left its benchmark rate range unchanged, but Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented in favor of a hike, and long-dated Treasury yields climbed, with the 10-year posting its largest daily gain in a month.

Disappointing Reports

Several lenders reported weaker-than-expected results, with First Busey sliding after missing earnings estimates and moving a large commercial relationship to non-accrual status. Renasant fell after missing estimates, even as it agreed to buy another company and announced a new buyback.

Higher long-term yields can cut both ways for banks, since a steeper curve can eventually help lending margins, but rising yields also reduce the value of bonds banks hold on their balance sheets and can raise funding costs.

Winners in Finance

Not all financial stocks struggled, as Evercore jumped after posting adjusted earnings far above estimates, and LPL Financial tumbled after its revenue missed, while Robinhood Markets fell after its profit missed despite record revenue.

Financials overall were among the sectors that rose, highlighting how much the day's moves depended on individual company results rather than a uniform sector move.