Financial stocks near breakout levels as market focus stays on AI
Financial stocks near breakout as banks and insurers ride stronger rates and deal flow See which names are edging higher and why investors may be rotating in now
Financial stocks are approaching breakout territory even as AIrelated technology shares continue to dominate market attention. A CNBC screen of S&P 500 companies found that about a quarter of the financial sector, or 20 of 76 stocks, were trading within 10% of 52week highs without setting new highs in at least 100 days.
The group includes major banks such as JPMorgan Chase, Bank of America, Fifth Third, US Bancorp and Citizens Financial, along with insurers including Chubb, Travelers, Hartford Insurance and Cincinnati Financial. The Invesco KBW Bank ETF recently reached an alltime high, and JPMorgan and Bank of America also moved to fresh intraday records.
The article says the move reflects investor reassessment of growth and interestrate expectations, as well as stronger capital markets activity such as increased public offerings and dealmaking. Analysts cited in the piece also noted that banks have historically shown resilience in periods when shortterm rates rise faster than longterm rates.