Lates News

Amidst a record-breaking surge that brings banking stocks close to historic highs, HSBC has started to adopt a cautious stance towards the three major banks in the United States. Analyst Saul Martinez wrote in a report downgrading the ratings of JPMorgan Chase, Goldman Sachs, and Bank of America, stating, "The downside risks related to still high macro uncertainty, potential economic growth slowdown, and rate cuts in 2025 and 2026 are not fully reflected in current stock prices." He also pointed out, "The repricing of fixed-rate assets, strong credit quality, improvements in investment banking activities, and favorable regulatory environment are already well reflected in the stock prices." Martinez downgraded the ratings of JPMorgan Chase and Goldman Sachs from "hold" to "reduce holdings" and downgraded Bank of America's rating from "buy" to "hold." The KBW bank stock index ended its 11-day winning streak on Monday when the ratings were downgraded, marking the longest continuous increase in the history of the index. The index is currently about 2% lower than the historic high set in January 2022.