The stock market has had a turbulent year due to the war between Ukraine and Russia, supply chain disruption, multi-decade high inflation, and the Fed’s aggressive interest rate hikes. After hiking the benchmark interest rates thrice this year, the Fed is expected to hike the rates by 75 basis points this week.
The increase in interest rates bodes well for financial institutions, including banks, as it helps them increase their revenues. Investors’ interest in banking stocks is evident from the SPDR S&P Bank ETF’s (KBE) 5.9% gain over the past month.
