Are the tides turning for regional bank equities? Between July 11 and July 22, the KBW Nasdaq Regional Bank Index gained 10.2%, while the large-cap KBW Nasdaq Bank Index rose just 3.6%. Part of the outperformance can be attributed to a broader rotation from large caps into small caps, and regional bank stocks were already in the doldrums heading into earnings season, so they're rising from a lower base. But regionals' net interest income also appears to have bottomed, while the NII outlook for big banks is less rosy.
Another S&P article discusses how forthcoming rate cuts will likely trigger a surge in M&A activity.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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