Comment on Bank stocks are on fire and traders are lining up bets for more to come

Bank stocks are on fire and traders are lining up bets for more to come

No area of the stock market benefited more than financials following the Federal Reserve's most recent comments. Now traders are betting the group's climb to the highest level in a decade has a ways to go. An index of financial stocks climbed as much as 1% on Wednesday, with the majority of those gains coming immediately after the Federal Open Market Committee (FOMC) announced that it will slowly begin the long-awaited unwinding of its balance sheet next month. The gauge finished the day up 0.6%, at its loftiest point since 2007, amid optimism that an eventual rate hike will boost interest income for firms. Looking ahead, bullish sentiment is continuing to swell in financials.

 

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