Shares of banks and other financial institutions fell after comments from Federal Reserve Gov. Christopher Waller drove up Treasury yields.
Mr. Waller threw cold water on market hopes that the Fed was planning to begin an extensive rate-cutting campaign in the near future.
Fed Chairman Jerome Powell "pivoted" to a more dovish stance in December policy statement, but it remains unclear when the central bank will make its first rate cut in recent years.
Goldman Sachs Group shares rose slightly, but remained lower for 2024 to date, after the Wall Street giant said strength at wealth-management operations rather than core investment-banking and trading operations drove a 51% increase in fourth-quarter profit.
Morgan Stanley shares fell as the firm that has outpaced Goldman's growth in recent years to become the largest Wall Street bank compared less favorably with its rival in the latest quarter.
"U.S. presidential elections have occurred 23 times since 1932, bringing with them increased market uncertainty as investors position portfolios based on expectations for the next four years of shifting political winds," said Saira Malik, chief investment officer at money manager Nuveen, in a note to clients.
Trump won the Republican Iowa Caucuses Monday night with the largest margin in the history of the first Republican presidential nominating contest.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-16-24 1732ET
