Wall Street views the current selloff as a buying opportunity ahead of upcoming earnings reports. However, analysts note that during market crashes in 2000, 2008, and 2020, the KBW Bank Index peaked 4 to 8 months before the S&P 500, suggesting that a continued divergence where banks fall while the broader market hits new highs could signal a larger downturn.
Tuesday, October 20, 2026
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Largest US Bank Shares Drop Up to 25% in Sector Correction
US Markets11 days ago
Shares of the most prominent US lenders have tumbled by double digit percentages, with Capital One and Goldman Sachs leading the decline with losses of 25% and 24% respectively. Other major casualties include Bank of America and Morgan Stanley, both down 19%, Wells Fargo at 18.5%, PNC Financial at 16%, and Citigroup and US Bancorp at 15%. The KBW Nasdaq Bank Index, which tracks 24 publicly traded banking stocks, has fallen 14% from its peak in August.
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