The regional bank sector pared gains in afternoon trading Wednesday, after the Federal Reserved raised its target range for overnight rates by 0.25 percentage points, as expected. The SPDR S&P Regional Banking exchange-traded fund KRE was up 1.7%, but had been up 2.7% just before the Fed’s rate move. On Tuesday, the ETF had tumbled 6.3% to a 2 1/2-year closing low. Among the ETF’s more-active components, shares of PacWest Bancorp PACW rose 3.9%, but was up 6.1% before the rate hike; of Truist Financial Corp. TFC moved from a gain of 1.9% to a gain of 1.6% after the rate move; of New York Community Bancorp Inc. NYCB edged up 0.6%, after being up 1.5% pre-rate move; and of Western Alliance Bancorp WAL tacked on 2.1%, down from a gain of 4.7% after the rate move. In comparison, the S&P 500 SPX was up 0.5% just before the rate move, and is now up 0.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.