Weekly Recap: Financial Stocks Rise with Broader Market, Crypto Firms See Biggest Weekly Swings

Crypto stocks and fintechs experienced significant weekly swings, while financial stocks generally rose with the broader market. The Financial Select Sector SPDR ETF (XLF) advanced 1.2% and the S&P 500 Index gained 1%. TeraWulf (WULF) led the gains among financial stocks, with a notable increase.

Financial stocks experienced a robust week, with the broader equity market contributing to the overall positive trend. The Financial Select Sector SPDR ETF (XLF) advanced by 1.2%, while the S&P 500 Index gained 1%. This upward movement was driven by positive earnings reports from several key companies, including those in the cryptocurrency and fintech sectors.

TeraWulf (WULF) stood out as the top performer, surging 78% after Google (GOOG) announced a strategic 8% stake in the crypto miner [1]. Fellow Bitcoin miner Hut 8 (HUT) also saw a substantial increase of 20% as the price of Bitcoin briefly touched new all-time highs during the week [1]. Other notable gains included UNM Holdings (UWMC) accelerating 17%, Lemonade (LMND) gapping up 17%, and BitMine Immersion Technologies (BMNR) rising 12% [1].

Despite these gains, not all financial stocks performed well. Retail trading platform eToro (ETOR) tumbled 17% despite posting strong Q2 results, while Upstart Holdings (UPST) dipped 6.8% after pricing $600M in convertible debt [1]. Circle Internet Group (CRCL) slid 6.1% after reporting stronger-than-expected Q2 revenue and pricing a 10M-share public offering, while Galaxy Digital (GLXY) retreated 6.1% after closing a $1.4B project financing facility [1]. Argentine lender Grupo Financiero Galicia (GGAL) also saw a decline of 5.4% [1].

The overall positive trend in the financial sector was supported by the positive earnings season, with over 90% of S&P 500 index companies reporting results. Analysts expect S&P 500 earnings to rise by 11.8% in Q2, after initially expecting a 5% growth rate amidst President Trump's tariffs and economic uncertainty [1]. This week, highly anticipated earnings reports from retail bellwethers Walmart (WMT), Target (TGT), Home Depot (HD), and Lowe's (LOW) are expected to provide further insights into consumer spending trends [1].

In summary, the financial sector experienced a robust week, driven by strong earnings reports and positive market trends. While some stocks faced challenges, the overall sentiment remains bullish, supported by the broader economic recovery and positive earnings season.

References:
[1] https://www.ainvest.com/news/financial-stocks-rise-earnings-season-crypto-fintech-stocks-biggest-weekly-swings-2508-32/