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Big US Bank Stocks Suffer Worst Weekly Losing Streak Since 2008 Financial Crisis
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Moneycontrol•17-10-2026, 09:00
Big US Bank Stocks Suffer Worst Weekly Losing Streak Since 2008 Financial Crisis
- •Major US bank shares recorded their longest weekly losing streak since the 2008 Global Financial Crisis after recent quarterly earnings failed to improve sector sentiment.
- •The KBW Bank Index dropped nearly one percent this week, marking a six-week decline and plunging about thirteen percent since its August peak.
- •Citigroup Inc., State Street Corp., Bank of America Corp., and Morgan Stanley emerged as the worst performers on the index.
- •The sector faces mounting pressure from concerns over artificial intelligence disruption, sticky inflation, and expectations that the Federal Reserve will maintain higher interest rates.
- •Analysts warn that rising funding costs and long-term AI threats to low-cost deposits could further impact bank profitability and broader economic growth.
Key Questions Answered
Big US bank stocks recorded their worst weekly losing streak since the 2008 Global Financial Crisis as quarterly earnings failed to improve sentiment, alongside worries over AI disruption and a hot inflation print affecting Federal Reserve rate expectations.
Citigroup Inc., State Street Corp., Bank of America Corp., and Morgan Stanley were among the worst-performing stocks on the index.
The bank gauge underperformed the S&P 500 Index in 18 of 21 trading days following the Federal Reserve's interest rate hike on September 16, marking an unprecedented trend since the index's inception in May 1992.
