Wall Street's major indexes went from cheerful optimism after the 2026 midterm elections to experiencing their worst day in over a year and a half. All three major indexes saw severe week-to-date losses from an ongoing technology selloff and policy fears related to AI.
However, the State Street Financial Sel Sec SPDR ETF 
XLF added 1.15% week-over-week to close at $57.16.
United States 10-Year Bond Yield 
US10Y slid to 4.87% from 4.93% during the course of the week. Lower long-term rates help banks by lowering the impact of accumulated other comprehensive income on deal marks, S&P Global Market Intelligence reported, citing an interview with StoneX Managing Director Brett Rabatin.
Meanwhile, insurance indexes remained in positive territory for the week.
Among megacap financial stocks, Berkshire Hathaway (BRK.B) (BRK.A) led the gainers, advancing 5.24% and 5.03% from the previous week to close at $570.89 and $856,612.00, respectively.
The stock was rising ahead of the company's scheduled Q3 earnings announcement. For the third quarter, the investing behemoth reported operating earnings of $12.7B (-5.8% Y/Y).
Mastercard 
MA and Visa 
V followed, adding 2.30% and 2.19% to $652.70 and $422.65, respectively.
With Democrats winning the midterm elections, the ideas President Trump endorsed, such as capping credit card interest at 10%, face stronger opposition. Credit card stocks stand to benefit.
Goldman Sachs Group 
GS (-3.21% W/W to $865.82) and Mitsubishi UFJ Financial 
MUFG (-2.74% W/W to $20.97) led the weekly losers in the category.
Bank stocks fell but outperformed broader markets during the week, the worst week of the year for the market, according to a report by S&P Global Market Intelligence.
The stock market rise in the morning after the election was partly a "relief rally" after a period of uncertainty. However, a reversal into negative territory reflected investors' belief that the war with Iran may last longer than expected, Stifel Chief Washington Policy Analyst Brian Gardner reportedly said.
Truist Securities analysts reportedly said that they were "surprised that banks outperformed (albeit modestly) on the strong Blue Wave this week." The favorable regulatory backdrop for banks will last for at least two more years, but control of Congress does not actually move the needle for banks.
Life and health insurers Unum Group 
UNM (-15.79% W/W to $76.75) and Sun Life Financial 
SLF (-11.59% W/W to $71.53) led the largecap losers. The stocks lost out on the back of their quarterly results announcement.
Rocket Companies 
RKT (+17.66% W/W to $15.06) led the gainers in the category. Democratic sweep gave a boost to most housing-related stocks.
Among midcap stocks, Riot Platforms 
RIOT (+30.44% W/W to $16.71) was the top winner. The stock jumped as the crypto miner and data center operator reported third-quarter earnings above analyst estimates and its largest lease in history.
Ethos Technologies 
LIFE (-22.77% W/W to $33.51) topped the losers as the tech rout spread into insurtech. The Nasdaq Composite 
COMP suffered its steepest one-day decline in 19 months on Thursday, confirming a correction and ending in a fourth consecutive weekly loss.
Another stock endorsed by the Trump administration and a crypto treasury firm, Hyperliquid Strategies 
PURR (-19.94% W/W to $8.82), was the next major loser in the category. Additionally, the week saw the company report its first-quarter fiscal earnings.
PRA Group 
PRAA (-33.71% W/W to $12.92), Evernorth 
XRPN (-25.49% W/W to $10.58), and LendingTree 
TREE (+32.46% W/W to $37.01) were the notable smallcap movers.
