The S&P Financials sector, represented by the $XLF exchange-traded fund, has shown notable strength, reaching an all-time high monthly close. Analysts have observed a rising relative strength in financials, with $XLF up over 30% in the past year, suggesting resilience against recession indicators. Key holdings in the $XLF include Berkshire Hathaway ($BRK.B) at 11.87%, JPMorgan Chase ($JPM) at 10.40%, Visa ($V) at 8.16%, Mastercard ($MA) at 6.29%, and Bank of America ($BAC) at 4.27%. Despite this positive performance, merger and acquisition (M&A) and initial public offering (IPO) activities have reportedly slowed, marking 2025 as a particularly quiet year for such transactions. Analysts remain optimistic about the banks' performance, indicating that they are likely to lead market rallies, unaffected by tariffs and regulatory changes.