A rally in stocks faded as banks dragged down the broader market despite gains in tech shares. Bitcoin slumped after a news report that federal investigators are probing cryptocurrency firm Tether.

The S&P 500 was little changed after climbing almost 1 per cent. Banks got hit as New York Community Bancorp tumbled 8.3 per cent on a weaker outlook. Goldman Sachs dropped 2.3 per cent and JPMorgan Chase & Co. lost 1.2 per cent. Crypto shares sank as the Wall Street Journal said the US is investigating Tether for possible violations of sanctions and anti-money-laundering rules. A gauge of the “Magnificent Seven” megacaps notched its best back-to-back jump since February. Treasuries wrapped up a tumultuous week with saw small moves as caution prevailed ahead of key events.

Bloomberg