Optimistic comments from banks had helped the sector last week, including JPMorgan Chase chief executive Jamie Dimon’s (pic) forecast that reserve increases for loan default protection could taper in the third and fourth quarter.
NEW YORK: Investors eyeing a turnaround in the US economy are piling into US bank stocks even as some caution that positive stress test results and an abatement of loan losses will be needed to sustain a rally in the battered sector.
The S&P 500 bank index has kicked off June with an 8% advance so far, following a two-day rally of 15% last week. Banks are sensitive to consumer and business spending so the stocks were slammed by the coronavirus-related economic slump.
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