Investing.com - Financial stocks took the brunt of the selling midday as a continued inversion on parts of the Treasury yield curve weighed on banks.
The S&P 500 Financials index fell about 2.3% at 11:45 AM ET (16:45 GMT).
A yield curve inversion happens when longer yields fall below those of shorter-dated bonds.
The 3-year and 5-year Treasuries inverted Monday for the first time since 2007 and today the 2-year and 3-year yields were above the 5-year yield.
Inversions are troublesome for bank earnings as it could lead to negative net interest margins, where banks loan out at lower longer-term rates while paying higher shorter-term rates borrowing (such as for deposits).
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