Bank Stocks Make a Comeback
The Wall Street Journal2022-08-19
Bank stocks have had a rough year. Lately they’re showing signs of life.
Since the end of June, five of the six largest U.S. banks have outperformed the S&P 500’s 13% gain. Shares of Morgan Stanley and Goldman Sachs Group Inc. are up 21% and 19%, respectively. Wells Fargo & Co. is up 18%. Bank of America Corp. and Citigroup Inc. have gained about 17% and 16%, respectively.
JPMorgan Chase& Co. shares are up about 8% so far in the third quarter.
Bank stocks sold off sharply in the first half of 2022 after two years of significant gains, pushed lower by a number of factors. Russia’s war in Ukraine upended commodities markets. Investors worried that the Federal Reserve rate-raising campaign against inflation would push the U.S. into recession. Corporate chiefs, unnerved by the uncertainty, moved to the sidelines, drying up the deal-making boom that buoyed banks throughout the pandemic.
Some analysts say that now, much of the bad news is baked in, both for banks and the broader market. Stocks have climbed across the board since June.
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