Shares of major U.S. financial stocks, as represented by theFinancial Select Sector SPDR Fund(NYSE:XLF), surged to record highs, in the wake of the March Federal Open Market Committee (FOMC) meeting.
This rally was fueled by anticipations of stronger economic growth and a reduction in borrowing costs, potentially boosting loan demands for U.S. banks.
Equity analyst Ebrahim H. Poonawala from Bank of America highlighted the market's optimistic outlook in a note on Thursday, noting the Fed's projection of three 25 basis point rate cuts in 2024 and its "fairly soon" reference to the commencement of the...
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