KBW Bank ETF Hits Record High as JPMorgan and Bank of America Reach First Peaks in 5 Months
Updated
Updated · CNBC · Jun 17
KBW Bank ETF Hits Record High as JPMorgan and Bank of America Reach First Peaks in 5 Months
3 articles · Updated · CNBC · Jun 17
Summary
KBWB rose to an all-time high Wednesday, while JPMorgan and Bank of America hit their first intraday record highs since early January after months below prior peaks.
20 of 76 S&P 500 financial stocks were within 10% of 52-week highs without setting a new high for at least 100 days, signaling a broader breakout setup across banks and insurers.
More than 8% gains in KBWB this month have outpaced semiconductors as investors reassess growth and rates ahead of Kevin Warsh's first Federal Reserve meeting.
JPMorgan, Bank of America and peers are also benefiting from stronger fee businesses, with renewed IPOs and dealmaking lifting capital-markets activity beyond traditional lending spreads.
Bank of America analysts said bank net income has grown 7% on average across seven bear-flattening cycles since the 1970s, suggesting fundamentals can stay resilient even when bank stocks lag.