Banks stocks gain after US Congress averts historic debt default
Reuters
Published Jun 02, 2023 12:58PM ET
(Reuters) - Shares of U.S. banks rose on Friday after the U.S. Senate on Thursday passed bipartisan legislation that lifted the government's $31.4 trillion debt ceiling and averted a historic default.
Shares of JPMorgan Chase & Co (NYSE:JPM), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC) gained between 2.2% and 3.8%
Their mid-sized counterparts, Charles Schwab (NYSE:SCHW), PNC Financial (NYSE:PNC), Regions Financial (NYSE:RF), US Bancorp (NYSE:USB), 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.
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Written By: Reuters
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