A More Hawkish Fed Changes the Math for Big Bank Stocks. Here's How.
Would rising rates change the calculus for the big banks?
Overview
Large banks have been enjoying a pretty favorable interest rate environment since the Federal Reserve started easing rates in 2024 and 2025.
Over the past three years, the KBW Nasdaq Bank Index, which tracks large banks, has risen some 135%. JPMorgan Chase (NYSE: JPM) stock has returned 34%, 41%, and 27% in each of the past three calendar years, respectively. Wells Fargo (NYSE: WFC) has had similarly strong returns over the past three years, as has Bank of America (NYSE: BAC), although BAC had a weaker 2023, returning just 2% in 2023 followed by returns of 30% and 25% in 2024 and 2025, respectively.
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Originally published at www.fool.com.
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