Market Insider

Bank stocks post worst day in half a year as Trump uncertainties grow

Pedestrians walk along Wall Street across from the New York Stock Exchange.
Michael Nagle | Bloomberg | Getty Images

Financial stocks led market declines Tuesday as Treasury yields fell and traders grew anxious about government policy ahead of Friday's inauguration.

The SPDR S&P Bank ETF (KBE) fell nearly 3.4 percent in its worst day since June 27, 2016. Financials declined nearly 2.3 percent as the greatest laggard in the S&P 500, which lost 6.75 points Tuesday.

"I think financials are way, way ahead of themselves," said Jeremy Klein, chief market strategist at FBN Securities. The sector is up more than 17 percent since the election as the top performer in the S&P 500.

Klein noted President-elect Donald Trump's press conference last week was "very unorthodox" and then unconventionally said the U.S. dollar was "too strong" in an interview with The Wall Street Journal. "People are getting concerned, maybe it's not full steam ahead," Klein said.