Bank of America Corp. (BAC) and other financial-company stocks rebounded from their worst week in two years, as concerns eased that the U.S. might face a full-blown trade war with China, the world’s second-largest economy.
The PowerShares KBW Bank Portfolio (KBWB) , an exchange-traded fund tracking shares of large U.S. banks, rose 2% Monday, outpacing a 1.1% rise in the broader Standard & Poor’s 500 Index of U.S. stocks. Last week, the bank-focused ETF fell 8.3% in the biggest drop since January 2016, as President Donald Trump announced $50 billion of tariffs on Chinese imports.