Shares of banks and financial services companies are trading lower after U.S. core inflation data bolstered the case for more Fed monetary tightening, which may slow lending and limit interest margins. Also, weak Q3 segment results from Bank of America and Morgan Stanley may dent confidence in the broader sector.

Nasdaq 100 Drops 1% on Hot CPI, SOXX Falls 7th Day: Stock Market Today

The Nasdaq 100 fell 1% by midday Wednesday after September CPI topped forecasts, pushing Treasury yields and rate-hike bets higher.

Goldman Sachs Maintains Buy on Affirm Holdings, Lowers Price Target to $103

Goldman Sachs analyst Will Nance maintains Affirm Holdings (NASDAQ:AFRM) with a Buy and lowers the price target from $115 to $103.

TD Cowen Maintains Buy on Affirm Holdings, Lowers Price Target to $110

TD Cowen analyst Moshe Orenbuch maintains Affirm Holdings (NASDAQ:AFRM) with a Buy and lowers the price target from $124 to $110.

Truist Financial Corporation (TFC) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Truist Financial (TFC) is expected to report Q3 2026 earnings of $1.17 per share, representing 12.5% year-over-year growth, with revenues projected at $5.31 billion. The company has a positive Earnings ESP of +2.67% combined with a Zacks Rank #3, suggesting a likely earnings beat. TFC has beaten consensus estimates in all four trailing quarters.

Here's Another Group of Stocks Getting Hammered by Soaring Yields

Rising bond yields are severely impacting bank stocks, with the KBW Nasdaq Bank index down 9.7% over the past month. Soaring yields squeeze bank profitability through reduced net interest margins, increased deposit competition from Treasury bills, depressed loan demand, and declining bond portfolio values. Major banks including Bank of America, Goldman Sachs, and Morgan Stanley have experienced double-digit percentage declines. The author recommends caution on bank stocks until yields stabilize.

TD Cowen Reinstates Hold on Bank of New York Mellon, Announces $160 Price Target