Financials are leading markets down today (XLF: -3.47%) on a downgrade of Citigroup (C: -6.43%) and a consideration that the Fed might really mean what it says and not cut rates again on Dec. 11.
The Fed talked a tough game in its statement yesterday, saying that inflation risks now equal risks to economic growth.
And this morning The Wall Street Journal ran a front page article by Fed reporter/insider Greg Ip titled “Fed’s Rate Cut Could Be Last For a While” (subscription required).
Bloomberg Fed reporter/insider John Berry ran a similar article titled “Fed Cuts, Signals Markets Don’t Look for Another”.
So investors are again getting nervous about financials. Other sectors are down a touch but generally holding up pretty well.