The financial sector comprises banking, real estate, consumer finance, capital markets, and insurance segments. The increasing interest rate environment is usually favorable for companies in the financial sector, especially banks. Higher rates boost the interest income of financial institutions, thereby increasing their profitability.
The Consumer Price Index (CPI) rose 0.5% over the prior month in January and 6.4% year-over-year. Both figures came in higher than the respective 0.4% and 6.2% projections of economists polled by Dow Jones.
