Tags: bank stocks | debt ceiling bill

Banks Stocks Gain as Historic Debt Default Averted

Banks Stocks Gain as Historic Debt Default Averted

Friday, 02 June 2023 02:25 PM EDT

Shares of U.S. banks rose Friday after the U.S. Senate Thursday passed bipartisan legislation that lifted the government's $31.4 trillion debt ceiling and averted a historic default.

Shares of JPMorgan Chase & Co., Goldman Sachs, Morgan Stanley, Citigroup, Wells Fargo and Bank of America gained between 2.2% and 3.8%

Their mid-sized counterparts, Charles Schwab, PNC Financial, Regions Financial, US Bancorp, and PacWest Bancorp, gained between 2.9% and 12%.

Meanwhile, a key jobs data on Friday highlighted a cooling in wage inflation that reinforced bets that the central bank will steer clear of a rate hike this month.

Fed funds futures trading showed an over 70% probability that the Fed will hold interest rates steady at its June 13-14 policy meeting.

Banks stocks typically fall out of favor after expectations of rate hikes are lowered because their profits take a hit when interest rates dwindle.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
Shares of U.S. banks rose Friday after the U.S. Senate Thursday passed bipartisan legislation that lifted the government's $31.4 trillion debt ceiling and averted a historic default.
bank stocks, debt ceiling bill
144
2023-25-02
Friday, 02 June 2023 02:25 PM
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