With the Federal Reserve expected to pause its rate-hiking campaign at this week's meeting, regional banks stocks have made a comeback, but that doesn't mean all the trouble is in the rearview mirror.
Still, the upward march resumed on Tuesday, begging the question of what's ahead for bank stocks.
As the Treasury sells tens of billions of dollars in Treasury bills, it could pressure bank deposits.
Graseck predicts that a reacceleration of deposit outflows would snuff out the bank stock rally.
In addition, regional bank earnings estimates, which had been cut severely in March and April, had leveled off in May.
Persons:
Jack Ablin, Ablin, outflows, SVB, Aditya Bhave, Bhave, Morgan Stanley, Betsy Graseck, Graseck, Nicholas Colas, Huntington Bancshares, Matt O'Connor, KeyCorp, Albin
Organizations:
Federal Reserve, Fed, Cresset, Silvergate, Silicon Valley Bank, Signature Bank, PacWest Bancorp, Bank of America, Treasury, DataTrek Research, Citizens Financial Group, Truist, Morgan Stanley U.S, Financials, CRE Conference, Deutsche Bank, TFC
Locations:
Silicon, Federal, U.S, 2Q23, New York