Sector Update: Financial Stocks Decline Late Afternoon

03:44 PM EDT, 10/23/2026 (MT Newswires) -- Financial stocks fell in late Friday afternoon trading with the NYSE Financial Index dropping 1.1% and the State Street Financial Select Sector SPDR ETF (XLF) declining 1.2%. The Philadelphia Housing Index lost 0.8%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) rose 0.1%. Bitcoin (BTC-USD) fell 0.2% to $81,208, and the yield for 10-year US Treasuries rose 3.9 basis points to 4.992%. In economic news, President Donald Trump is expected to remove 50% tariffs on some Canadian imports in an attempt to help Maine Sen. Susan Collins and other Republicans on ballots in the upcoming midterm elections, The Wall Street Journal reported. The announcement on the tariff rollback could come as soon as Friday and will likely impact some agricultural and forestry products, the report said. The reductions could be balanced by increasing tariffs on other Canadian goods, according to the report. US consumer sentiment hit its lowest level in five months in October as inflation expectations hit the highest since May, final results of a University of Michigan survey showed Friday. The main sentiment index fell 0.2% sequentially to 48 this month, but was higher than the preliminary reading of 46.3, according to the survey. The latest print marks the lowest since May. S&P Global's October flash reading of manufacturing conditions rose to 56.0 from 55.9 in September, versus the 55.5 forecast in a Bloomberg-compiled survey, indicating an expansion to a 53-month high. In sector news, prediction markets firm Kalshi is seeking to roll out a futures market tied to US inflation, Bloomberg reported. The company is aiming for a December launch for exchange-traded futures contracts that track the consumer price index and its core counterpart, which excludes food and energy prices, according to the report. In corporate news, eToro's (ETOR) offer to acquire European digital wealth manager Moneyfarm for 250 million euros ($279.8 million) to 300 million euros was rejected by the UK-based firm, Bloomberg reported. EToro shares fell 1.8%. American Express (AXP) reported Q3 revenue just below Wall Street's expectations on Friday, while the payments company's chief executive disclosed plans to terminate about 5% of its global workforce. Its shares fell 3.8%. Barclays (BCS) will offer employees the chance to move into other teams and prioritize internal moves for vacant roles over external hiring as it cuts 5% of its workforce this year, Bloomberg reported, citing CEO CS Venkatakrishnan's remarks to staff. Separately, Barclays, Bank of Baroda and other creditors are seeking to recover debts from collapsed remittance provider UAE Exchange, which has an estimated $1.03 billion deficit in net assets, Bloomberg reported. Barclays shares were down 1%. Flagstar Bank (FLG) shares fell past 9% after it reported Q3 results that missed analyst expectations.