Bank Stocks Sink Past SVB Crisis Lows as Rates Upend Business
- KBW Bank Index extended year’s drop to 29%, past May’s low
- Goldman’s market cap sinks below $100 billion amid selloff
A trader works on the floor of the New York Stock Exchange.
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An index of the largest US bank stocks fell below the level hit just after the collapse of First Republic Bank in May as the sector grapples with higher interest rates that have dimmed earnings prospects.
The KBW Bank Index fell 2.3% Friday to close at a level not seen since September 2020. The group of 24 lenders has tumbled 29% this year, with much of the rout coming after Silicon Valley Bank’s collapse in March and First Republic’s demise two months later. The latest batch of earnings from heavyweights like Morgan Stanley and Citigroup Inc. added to the woes. The S&P 500 is up 7.2% in 2023.