Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Global Head of Macro Strategy
Summary: US bank stocks rebounded last week, with 8 out of the top 10 performing stocks being bank stocks. This rebound was driven by two factors:
- The stabilization of smaller regional banks, as evidenced by decreasing customer deposit outflow and net interest income.
- The continued strength of consumer banking, as evidenced by increased credit card borrowing and higher loan charges.
While there are still some concerns about the banking industry, such as the exposure to commercial real estate loans, the recent rebound suggests that there may be some value to be had in US bank stocks.