Shares of KeyCorp (KEY) rebounded slightly on Wednesday, after the company's stock took a major hit earlier this week along with the entire financial sector.
Concerns regarding President Donald Trump's ability to implement his agenda to cut taxes, diminish financial regulations, and increase government spending on infrastructure are starting to infiltrate markets.
This comes after FBI director James Comey, announced Monday, that his organization is investigating ties between the Trump campaign and the Russian government.
KeyCorp fell 7.1% Tuesday, but shares closed up 1.5% to $17.15 in trading Wednesday. Competitors BB&T (BBT) and Zion Bancorp (ZION) shares fell over 5% Tuesday, but closed with slight gains around 0.2% Wednesday.
In reaction to the weakness in the financial sector, Jim Cramer's Action Alerts PLUS charitable portfolio initiated a position in KeyCorp on Wednesday morning prior to the the open.
"We believe yesterday's pullback has offered the opportunity to at least get our feet wet in this new name," wrote Cramer in a recent note. "We have waited patiently -- the stock has underperformed the broader S&P 500 by more than 9% since our bullpen note -- and believe now is the time to strike."
The KBW Nasdaq Bank Index fell 0.5% on Wednesday, after falling 4.3% the day before. The Financial Select Sector SPDR ETF (XLF) dropped 2.9% on Tuesday and closed down 0.2%.
For a more in-depth look at KeyCorp check out: We're Initiating a Bank Position on Weakness