Over the past four trading sessions, performance of major bank stocks depicted a bullish picture. This optimism primarily seems to be driven by the hopes of more economic stimulus as the U.S. Congress confirmed Joe Biden’s victory in the Presidential election. The additional stimulus package is likely to spur economic growth and more lending along with less chance of credit losses for banks.
Further, the gradual rollout of COVID-19 vaccines across the globe has led investors anticipating faster economic recovery. With banks’ financials directly tied to the health of the economy, investors are now expecting improved profitability for major banks in the quarters ahead.
