Small US Lenders Primed for Big Share Gains on Curve Steepening
Market Intelligence Analysis
AI-PoweredThe S&P Regional Bank Select Index, which includes small US lenders, is expected to outperform the S&P 500 Index for the third consecutive month, driven by the US economy's performance and strategists' preference for smaller banks.
Market impact analysis based on bullish sentiment with 90% confidence.
Article Context
The S&P Regional Bank Select Index, home to lenders like Pathward Financial Inc. and Metropolitan Bank Holding Corp., is on track to outperform the S&P 500 Index for a third consecutive month, the longest winning streak since 2022. The US economy is humming along, reducing the relative appeal of bigger lenders with sturdier balance sheets, say strategists at 22V Research, who are overweight small-cap banks.
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