Investing.com - Financials ran out of steam midday Tuesday on rising trade tensions after President Donald Trump lashed out at international trade partners for unfair trading practices.
In an address to the United Nations General Assembly, Trump defended his administration's tough stance on trade, vowing that "The United States will not be taken advantage of any longer," and was adamant the U.S. will "no longer tolerate such abuse."
Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Morgan Stanley (NYSE:MS) gave up early-day gains, falling to near session lows, keeping gains in the market in check.
The S&P Financial Sector index was down about 0.2%.
The retreat from session highs in bank stocks come even as bond yields held onto the lion share of gains racked up intraday ahead of a widely expected Federal Reserve interest rate hike Wednesday.
Rising Treasury yields are seen as boon for banks, boosting their net interest margin, the difference between the interest income generated by banks and the amount of interest paid out to their lenders.
Elsewhere, energy battled to lift investor sentiment, despite oil prices paring some gains after Trump blasted OPEC, accusing the cartel of ripping off the rest of the world with high energy prices.
Healthcare names, meanwhile, continued to lead the S&P 500 as ABIOMED (NASDAQ:ABMD) rallied about 4.7% amid reports institutional investors increased their holdings in the drug company.
Nomura lifted its holdings in ABIOMED by 1,548% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC).
Pot stocks were also in focus as shares of Aleafia Health (V:ALEF) surged 25% after the company was added to the Horizons Marijuana Life Sciences exchange-traded fund.