The U.S. Fed recently announced a 0.5% increase in benchmark interest rates to bring sky-high inflation down. The Fed’s policy response to tame inflation through interest rate hikes is a positive signal for banks. Notably, the rising interest rate environment supports banks’ net interest income (NII).  However, the market’s response has been cold, as an increase in interest rates have failed to lift bank stocks. Moreover, shares of several top banks are trading in the red on a year-to-date basis.  For context, JPMorgan Chase, Bank of America, and Wells Fargo shares are down about 22%, 18%, and 7%, respectively, on a year-to-date basis.
https://www.tipranks.com/news/article/as-interest-rates-rise-which-bank-can-outperform?utm_source=advfn.com&utm_medium=referral
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Jun 2022 bis Jul 2022 Click Here for more Wells Fargo Charts.
Wells Fargo (NYSE:WFC)
Historical Stock Chart
Von Jul 2021 bis Jul 2022 Click Here for more Wells Fargo Charts.