That throws cold water on investor hopes for a repeat of last year’s stock performance, which saw bank leaders climb 33%, outperforming the broader S&P 500.
Wall Street banks’ outlook for the year will be in the crosshairs after a disappointing first look at earnings from Jefferies Financial Group and a blowout jobs report that fanned inflation fears.
The US Federal Reserve’s recent reticence to keep up the pace of interest rate cuts was backed by Friday’s strong labour report that sent the stock market tumbling and yields higher.
