U.S. Bank Stocks Reach Monthly High
Bloomberg reported U.S. bank stocks rallied to the highest in a month as economists speculated that the stronger-than-expected January jobs report will accelerate the Federal Reserve’s timetable for raising interest rates.
According to Bloomberg, all 24 lenders in the KBW Bank Index rose Jan. 6, led by Regions Financial Corp.’s 5% jump at 11 a.m. in New York and Bank of America’s 4.4% gain. Financials in the Standard & Poor’s 500 Index advanced the most of any industry as employers in the U.S. added more jobs than forecast in January, capping the biggest three-month gain in 17 years, Bloomberg said.
Interest rates have set new lows in the six years since the financial crisis, crimping lending margins for banks. Sustained job growth probably will help assure Fed policy makers that the expansion is well-rooted and can withstand an increase in interest rates this year.
To view the full Bloomberg report, click here.