(Reuters) - U.S. bank shares outperformed the broader market on Monday, led by Goldman Sachs and Morgan Stanley, after the Federal Reserve said stress test results meant the sector could resume stock buybacks for the first time since the coronavirus-led downturn.
Earlier this year, the Fed barred banks from buying back stock to help them build capital reserves because of the COVID-19 pandemic.
Morgan Stanley was up 5.9% and trading at its highest since September 2007.
In comparison, the S&P 500 bank subsector, which does not include Goldman or Morgan Stanley, was up 3.1%.
As for Goldman Sachs, Harte noted that investors had worried more about the bank’s dividend prospects during the pandemic.
Goldman Sachs, Morgan Stanley, Goldman, Piper Sander, Jeffery Harte, “, ”, Harte, Goldman wouldn’t, Grant, Keefe, Refinitiv Morgan Stanley’s, JPMorgan Chase, gainers
Reuters, Federal Reserve, Fed, JPMorgan, Citigroup, Bank of America, European Union
United Kingdom, Britain