Strong first-quarter earnings may not be enough to sustain a rally in bank shares that has been a primary driver of overall stock market gains since the U.S. presidential election, as slower loan growth dents investor enthusiasm for the sector.
Earnings on Thursday for major banks JP Morgan (JPM.N), Citigroup (C.N) and Wells Fargo beat expectations (WFC.N), but each showed evidence of slower loan growth.
Financials .SPSY have been the best-performing of the 11 major S&P sectors since the election. They are up nearly 16 per cent on expectations of pro-growth policies and industry deregulation promised by President Donald Trump, as well as measured interest rate increases from the Federal Reserve.
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