The two-year Treasury yield dropped to its lowest level since May, reflecting a shift in market sentiment regarding the Federal Reserve's path forward. This retreat in yields provided a tailwind for the financial sector, with private-credit firms like Blue Owl and Blackstone seeing notable gains as borrowing conditions appeared to soften.

Contrasting the sector's broader optimism, Robinhood Markets announced plans to cut 10% of its workforce. The online brokerage’s move marks its first significant reduction in headcount in three years, highlighting the persistent cost pressures facing fintech players even as the wider market finds its footing.