HSBC lowers ratings on three major US banks to cautious after strong gains.

As a record-breaking rally in bank stocks approaches historic highs, HSBC is beginning to take a cautious stance on the three largest banks in the United States. Analyst Saul Martinez wrote in a report downgrading ratings for JPMorgan Chase, Goldman Sachs, and Bank of America, stating, "Overall, the high level of macro uncertainty, potential economic growth slowdown, and downside risks related to rate cuts in 2025 and 2026 are not reflected in current stock prices." He also noted, "The repricing of fixed-rate assets, good credit quality, improvements in investment banking activities, and favorable regulatory environment are already well reflected in stock prices." Martinez downgraded JPMorgan Chase and Goldman Sachs from "hold" to "sell," and Bank of America from "buy" to "hold." At the time of the downgrade, the KBW Bank Stock Index ended an 11-day streak of gains on Monday, the longest in the history of the index. The index is currently about 2% below the historic high set in January 2022.