US bank stocks suffered their worst quarterly loss since the regional banking crisis two years ago on concern that President Donald Trump’s trade war will derail the economy.
The KBW Bank Index fell 3.9% in the first three months of the year, the worst quarterly stretch since March 2023. The six largest US banks stocks whipsawed on Monday to end the day modestly higher as the market endured another volatile session ahead of Trump’s April 2 tariff rollout.
Markets have been gripped by anxiety that Trump’s trade policy shift will reignite inflation and slow the pace of the nation’s economic growth, with surveys showing increasing worries among US consumers. Analysts have downgraded stocks and cut earnings estimates for financial companies ahead of the next slate of earnings reports.
Last week, Jefferies Financial Group Inc.’s shares tumbled after it reported disappointing earnings amid a decline in investment-banking and capital-markets revenue. That’s a potential warning sign about other banks, given that the once-expected boom in mergers and initial public offerings never materialized as markets were focused on the rising economic uncertainty.
JPMorgan Chase & Co., Wells Fargo and Morgan Stanley will kick off the quarterly earnings for the biggest US banks on April 11.
Written by: Georgie McKay @Bloomberg
The post “US Bank Stocks Post Worst Run Since Fear-Fueled 2023 Rout” first appeared on Bloomberg
