Though the government reported the smallest increase in labor costs in a year Thursday, financial stocks resumed their decline.

The Labor Department reported an increase of just 0.9% in the employment cost index for the third quarter, indicating that historically low unemployment has not put pressure on wages. Normally, interest-rate-sensitive stocks would react positively to such news, but after mixed early trading, the American Banker index of 225 banks closed down 1.03%, its index of the top 50 banks lost 1.53%, and the S&P 500 fell 0.03%. The Nasdaq rose 1.32%.

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