Bank Stocks Nearing a Crisis-Era Threshold Raises Warning Sign
- S&P 500 financials threaten to push back below 2007 peak
- ‘You can’t have a bull market if bank stocks are falling’
This article is for subscribers only.
The selloff in US bank shares is threatening to push them below a technical threshold that could signal more pain ahead for the broader stock market.
With the collapse of First Republic Bank worsening fears about the solvency of regional lenders, investors have pummeled financial stocks, leaving the S&P 500 financials index on the verge of falling back below its 2007 peak. For perspective, after the 2008 credit crash it took over a decade for that gauge to recover the ground it lost.