Bull Theory(@BullTheoryio):IS US BANKING SECTOR IN TROUBLE? KBW Bank Index is down 13.40% from its August record. From their highs: JPMorgan is down 8.61% Bank of America is down 22.6% Wells Fargo is down 16% Morgan Stanley is down 22% Goldman Sachs is down 24% The main reason is bonds. The 10-year yield has jumped from about 4% to near 5.3% in six months, and banks' unrealized losses on their bond holdings keep growing as bond prices fall. If one sector is going completely opposite to the stock market, it is banks.

Bull Theory

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Bull Theory@BullTheoryio

2026.10.19 18:14

IS US BANKING SECTOR IN TROUBLE? KBW Bank Index is down 13.40% from its August record. From their highs: JPMorgan is down 8.61% Bank of America is down 22.6% Wells Fargo is down 16% Morgan Stanley is down 22% Goldman Sachs is down 24% The main reason is bonds. The 10-year yield has jumped from about 4% to near 5.3% in six months, and banks' unrealized losses on their bond holdings keep growing as bond prices fall. If one sector is going completely opposite to the stock market, it is banks.