After to falling to multidecade lows, investment-grade interest rates in the U.S. have increased about 35 basis points. Banks would benefit if the short-term trend continues, as interest rates have still fallen around 100 basis points year-to-date.
Modest interest rate increase helps lagging bank stocks
U.S. bank stocks have increased about 15% from their September lows, far outpacing the 6.81% return of the S&P 500 index. However, the stocks as a group are still down around 27% year-to-date.