U.S. bank stocks on track for longest weekly decline since 2008

U.S. bank shares are poised for a sixth straight week of decline, which would be the longest losing streak for the sector since 2008. The KBW Bank Index, comprising 24 major banks, is down 1.1% this week and has slipped 13% from its August record, putting it in correction territory. Citigroup, State Street, Bank of America and Morgan Stanley have led the downturn, whereas JPMorgan managed a 1.7% rise.

Recent third-quarter earnings were mixed, with stable operating leverage but disappointing fixed-income results. Analysts highlight a blend of factors: persistent inflation, a higher-for-longer rate environment, and uncertainty over how artificial-intelligence developments may affect banking revenues and deposit stability. The index has underperformed the S&P 500 on most trading days since the Fed’s September rate hike, a pattern not seen in any rolling 21-session window since the index’s inception in 1992.