Regional bank stocks have underperformed the S&P 500 by around 30% year to date. However, the group has been charging ahead of the large-cap index by 18% over the past month as investors bet on a post election stimulus approval to increase spending.
Regardless of the outcome of the election, investors are hoping Congress will finally turn their attention to passing a stimulus bill, increasing consumer spending, and potentially benefiting banks with a domestic focus.
Highlights
- Regional bank stocks outpaced the S&P 500 by 18% over the past month as investors bet on higher stimulus spending post-election.
- Huntington Bancshares Incorporated (HBAN) stock broke above a 10-month downtrend line and the 200-day simple moving average (SMA) in October before successfully retesting and defending the breakout level.
- Bulls pounced on a buy-the-dip opportunity in SVB Financial Group (SIVB) when the price retraced to the closely watched pre-COVID February high
Biden and Trump called for more stimulus to help American can families and businesses
While Democratic nominee, former Vice President Joe Biden has not committed to a specific stimulus plan, his website does call for more direct payments, additional money for small business, student loan relief, introduces emergency paid sick leave for all, and increased unemployment benefits.
President Donald TrumpTrump has also called for more direct payments in the next stimulus plan. With both cadidates pro-direct payments, investors just need congress to come to an agreement. With the election behind them, this should be a primary focus of theirs.
Below, aret two prominent regional banking stocks worth watching this week that reflect the trend covered earlier in this article.
