Bank stocks are no haven from rising rates

Federal Reserve Chairman Jerome Powell said the central bank must continue raising rates until it is confident inflation is under control. (Photo: AP)Premium
Federal Reserve Chairman Jerome Powell said the central bank must continue raising rates until it is confident inflation is under control. (Photo: AP)
 wsj 3 min read . Updated: 28 Sep 2022, 07:03 PM IST Telis Demos, The Wall Street Journal

The positive relationship between Treasury yields and bank stocks has broken down this year

Rising rates have been good for bank stocks in the past. That time appears to be over—for now. If casual investors know anything about bank stocks, it may be that they are a market sector that can benefit from higher interest rates.