From The Economic Times · · 1m 30s
US Bank Stocks Near Correction as Earnings Loom
US bank stocks hover near correction as earnings season approaches and consumer outlook shifts.
In brief
US bank stocks hover near correction as earnings season approaches and consumer outlook shifts. US bank stocks near correction as earnings season begins with rising interest rates and consumer borrowing costs. Originally reported by The Economic Times.
US bank stocks near correction
Shares of major US banks hover near correction territory as the sector prepares for earnings season on Tuesday.
Earnings season begins
Wall Street’s biggest banks are expected to report nearly $19 billion in combined stock-trading revenue for the quarter.
Treasury yields surge
The KBW Bank Index has fallen more than 10% since mid-August, meeting the threshold for a technical correction.
Interest rates rise
The decline coincided with a surge in Treasury yields and the Federal Reserve’s first interest-rate increase in three years.
Credit quality stable
Lending is expected to see a spike from a year earlier, while credit quality is likely to remain broadly stable.
Miskin on consumer loans
Higher yields can boost revenue but reach a tipping point where consumers just can’t pay these kinds of loans.
“a tipping point where consumers just can’t pay these kinds of loans”
Earnings reports coming
Citigroup, Goldman Sachs, JPMorgan Chase and Wells Fargo are scheduled to report before Tuesday’s opening bell.
AI and elections impact
Bank investors assess risks from artificial-intelligence agents and the November midterm elections.
Morgan Stanley view
Morgan Stanley analyst Manan Gosalia described the recent selloff as an attractive entry point for a stronger 2027.
“an attractive entry point”
In short
US bank stocks near correction as earnings season begins with rising interest rates and consumer borrowing costs.
