New PCE reading not ideal for Fed but won't upend rate cut expectations

Given the current economic context and the Fed's likely stance on interest rates remaining steady amid inflation concerns, investor sentiment towards financial sector stocks and ETFs may remain cautious. However, sectors considered defensive or those that benefit from stable interest rates (such as utilities and consumer staples) may present favorable opportunities.

In contrast, growth-oriented stocks, especially in technology, might see some volatility as investors weigh the implications of continued inflation on growth prospects. This sector often reacts strongly to interest rate forecasts.