The banking sector is showing signs of stability after the recent failures of three regional banks. The FDIC reported that U.S. banks lost $472 billion in deposits in the first quarter. However, the banking sector is expected to benefit from the higher interest rates as the Fed is likely to start cutting rates next year. Higher interest rates would mean higher net interest income for the banks.
Amid this backdrop, it could be wise to add banking stocks JPMorgan Chase & Co. (JPM), Bank of America Corporation (BAC), and Wells Fargo & Company (WFC) to one’s watchlist.
