Goldman Sachs: Investors should closely watch regional bank sector.

Given the high expectations of the market for the Federal Reserve's policy statement, after 02:00 Beijing time, the market may experience significant volatility. Goldman Sachs pointed out that investors should closely watch the regional bank sector. John Marshall, head of derivatives research at Goldman Sachs, wrote, "We observed that since 2023, the volatility of US bank ETFs on the day of the FOMC meeting has been unusually significant." Data shows that the average daily volatility of the S&P Regional Banks ETF on Federal Reserve interest rate decision days over the past two years has reached 2.5%. Marshall pointed out, "KRE may also experience significant volatility after today's decision announcement. Although US financial stocks have rebounded since the April low, we have found that regional banks have not been able to keep up with their normal correlation with macro assets. We noticed that before the FOMC meeting, KRE is currently trading at a 14% discount to its normal level."