US bank stocks hit their longest losing streak since 2008 amid AI disruption concerns and rising rate expectations.
Macro & Markets ·
The KBW Bank Index has fallen for six consecutive weeks, marking its longest losing streak since the 2008 financial crisis and the third-longest in the current century. Over this period, the index declined 11% to reach its lowest point since early June. Bank of America, State Street, and Citigroup were among the weakest performers, with respective declines of 18%, 14%, and 10% during the stretch.
The selloff reflects a confluence of pressures on the sector. Investors have grown concerned about artificial intelligence disrupting traditional financial services, while expectations for higher interest rates have also weighed on sentiment. These headwinds persisted even as major banks reported third-quarter 2026 results last week, suggesting that earnings updates have failed to restore confidence.
The magnitude of the decline underscores deepening skepticism about the near-term outlook for large banking institutions. What remains unclear is whether the weakness will stabilize if rate expectations shift, or whether AI-related disruption fears will continue to dominate trading dynamics in the sector.