Financial ETFs Rebound as JPMorgan and Goldman Sachs Stocks Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Source: Benzinga
- Financial ETF Rebound: The State Street Financial Select Sector SPDR ETF (XLF) rose nearly 2% on Thursday as major bank stocks like JPMorgan, Goldman Sachs, and Morgan Stanley increased, demonstrating the sector's resilience amid policy noise.
- Strong Earnings: Goldman Sachs reported double-digit profit growth in Q4, while JPMorgan posted record full-year revenues and net income, driven by significant increases in equity trading and advisory fees, further boosting market confidence in financial ETFs.
- Market Reaction: Although President Trump's comments on credit card interest rates briefly impacted bank stocks, investors refocused on earnings strength and fundamentals of large financial firms, fostering optimism among ETF investors.
- Diversification Advantage: Unlike more targeted bank ETFs, broader financial ETFs can absorb short-term headline risks due to their coverage of investment banks, lenders, insurers, and asset managers, allowing gains in one segment to offset weaknesses in another.
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Analyst Views on C
Wall Street analysts forecast C stock price to rise
18 Analyst Rating
15 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.970
Low
87.00
Averages
131.00
High
150.00
Current: 108.970
Low
87.00
Averages
131.00
High
150.00
About C
Citigroup Inc. is a global diversified financial services holding company. The Company’s segments include Services, Markets, Banking, Wealth and U.S. Personal Banking (USPB). The Services segment includes Treasury and Trade Solutions (TTS) and securities services. TTS provides an integrated suite of tailored cash management, trade and working capital solutions to multinational corporations, financial institutions and public sector organizations. The Markets segment provides corporate, institutional and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products and commodities. The Banking segment includes investment banking, which supports client capital-raising needs to help strengthen and grow their businesses. The Wealth segment includes Private Bank, Wealth at Work and Citigold and provides financial services to a range of client segments. USPB segment includes branded cards and retail services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investment Banking Growth Outlook: CEO Jane Fraser indicated that Citigroup expects mid-teens growth in Q1 investment banking fees, driven primarily by strong M&A and equity capital markets activity, despite ongoing uncertainties in the Middle East.
- Confidence in ROTCE Target: During the RBC Capital Markets Global Financial Institutions Conference, Fraser reaffirmed confidence in achieving a sustainable ROTCE of 10% to 11% this year, highlighting the bank's ability to maintain a 7% revenue growth amidst various challenges.
- Market Division Performance: While the markets division showed lackluster results, the robust growth in investment banking and wealth management compensated for this shortfall, demonstrating Citigroup's resilience in its diversified business model.
- Layoffs and Cost Management: Fraser noted potential additional layoffs to drive profitability targets in the investment bank, with expected severance costs being lower than last year, although these will be front-loaded into the current quarter's financials.
See More
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- Oracle's Strong Earnings: Oracle's quarterly results exceeded expectations, leading to a stock price increase of over 9%, with smooth AI buildout and remaining performance obligations exceeding $500 billion, highlighting the company's robust market position and growth potential.
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- Nike Upgrade: Barclays upgraded Nike from hold to buy, raising the price target from $64 to $73, arguing that tariff risks have eased, and management's progress in inventory management and margin stabilization provides a solid foundation for investment.
See More
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- Enhanced Partnerships: Morgan Stanley is expanding its operational efficiency and entering new markets through collaborations with technology firms and digital asset infrastructure providers, which are expected to strengthen its competitive position and support sustainable growth.
- Acquisition Strategy Deepens: In January 2026, Morgan Stanley acquired EquityZen to deepen its investment in high-growth private companies, broadening investment opportunities for its wealth management clients, reflecting its focus on the private market.
- Digital Asset Expansion: Morgan Stanley's partnership with Zerohash aims to launch cryptocurrency trading on its E*TRADE platform, expected to begin in the first half of 2026, positioning the bank to compete with existing crypto trading platforms while integrating digital assets into its ecosystem.
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- Diverse Issuance Structure: The debt offering may include as many as 11 different tranches, with maturities ranging from 2 to 50 years, demonstrating Amazon's flexibility and diversity in its financing strategy.
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- Political Context: Tillis believes that the investigation into Powell is politically motivated, particularly due to Powell's refusal to cut interest rates as quickly as demanded by President Trump, complicating the confirmation of Fed nominees.
- Evaluation of Warsh: Despite expressing admiration for Warsh's skills, stating he is 'already impressed' with his work, Tillis remains firm on not voting, reflecting a lack of trust in the current Fed leadership.
- Process Over Personal: Tillis emphasized that this is not about personal issues but rather about procedural integrity, indicating that he prioritizes the completeness and transparency of the nomination process, which could impact future Fed nominations and policy directions.
See More
