⭕️ US banks under historic pressure: longest losing streak since 2008
The KBW Bank Index has fallen for 6 consecutive weeks. This is its longest losing streak since the 2008 financial crisis and the third-longest this century. During this time, the index has lost 11% and is trading at its lowest level since the first week of June. Bank of America (-18%), State Street (-14%), and Citigroup (-10%) have fared the worst.
👉 Reasons: investors fear that AI will disrupt traditional financial services, while expectations of higher interest rates are weighing on the market. Mixed Q3 results from banks, released last week, did nothing to improve the situation.
This means the problem isn’t with just one bank, but with sentiment toward the entire sector. Expensive money is hurting lending and increasing debt costs, while fears about AI are adding uncertainty. This is a troubling signal for crypto: when big banks weaken, riskier assets usually come under pressure too.
The KBW Bank Index has fallen for 6 consecutive weeks. This is its longest losing streak since the 2008 financial crisis and the third-longest this century. During this time, the index has lost 11% and is trading at its lowest level since the first week of June. Bank of America (-18%), State Street (-14%), and Citigroup (-10%) have fared the worst.
👉 Reasons: investors fear that AI will disrupt traditional financial services, while expectations of higher interest rates are weighing on the market. Mixed Q3 results from banks, released last week, did nothing to improve the situation.
This means the problem isn’t with just one bank, but with sentiment toward the entire sector. Expensive money is hurting lending and increasing debt costs, while fears about AI are adding uncertainty. This is a troubling signal for crypto: when big banks weaken, riskier assets usually come under pressure too.