Shares of banks and other financial institutions rose ahead of earnings in the sector and as Treasury yields continued to fall in the wake of wholesale inflation data.

The yield on the two-year Treasury completed its biggest two-day drop since March. "You're seeing the financial stocks perform ... partially because the yield curve flattened a little bit with this move in bonds," said JJ Kinahan, chief executive of IG North America and president of its brokerage tastytrade.

"I think there is some optimism that JPMorgan, Citigroup and Wells Fargo (on Friday) can come out with some positive numbers." JPMorgan Chase rose ahead of second-quarter earnings from the largest U.S. bank by assets.

The extent to which the banking crisis has passed will be revealed as major banks divulge deposit levels and other key statistics during the earnings season, The Wall Street Journal reported. The extent to which the banking crisis has passed will be revealed as major banks divulge deposit levels and other key statistics.

U.S. District Judge Analisa Torres agreed with Ripple Labs' argument that roughly half of its sales of XRP didn't constitute an illegal securities offering. Shares of cryptocurrency exchanges such as Coinbase surged in the wake of the ruling as fears that cryptocurrencies would be regulated as securities diminished.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

07-13-23 1745ET