US Bank Stocks Fall for 6 Consecutive Weeks – Worst Streak Since 2008

The KBW Bank Index of major American banks has been declining for six consecutive weeks – the longest streak since the financial crisis of 2008. For shareholders, this means direct losses, for borrowers – the risk of expensive loans, while depositors may benefit from higher rates.

According to The Kobeissi Letter, the index has lost 11% over a month and a half, dropping to its lowest level since the first week of June. The current streak is the third longest this century: only 2002 and 2008 saw longer declines, lasting ten weeks each. Bank of America (−18%), State Street (−14%), and Citigroup (−10%) have been hit the hardest.

Investors are concerned about two things: that with the development of AI, banks will lose part of their business and that interest rates will rise. The third-quarter 2026 reports released last week were mixed and did not ease the pressure.

The nervousness is understandable when looking at the income structure. Bloomberg Intelligence analyst Herman Chan warned: American lenders made good money on SpaceX's IPO, but their dependence on the AI boom makes them vulnerable – the delay in Anthropic's placement will deprive them of some fees. The threat from AI is twofold: competition with new technologies plus losses if AI assets depreciate. Momei Ku from PSP Growth believes that Goldman Sachs and JPMorgan are already turning into AI stocks due to loans and deals in this area.

The anxiety is also visible at the state level. Financier Casey Donaldson noted that central banks are withdrawing gold from foreign vaults and buying the metal at the fastest pace in decades. Private investors, on the other hand, are selling gold due to rising rates.

The Bank of Russia is insuring the system differently – through increased requirements for the largest banks. The regulator has kept all 12 banks, which account for about 80% of the sector's assets, on the list of systemically important banks and requires them to maintain an additional capital reserve – a 1 percentage point surcharge to the standard.