Fitch Says U.S. Banks' Lower Expense Growth To Mitigate Margin Pressure In 2024
Portfolio Pulse from Benzinga Newsdesk
Fitch Ratings forecasts that U.S. banks will experience lower expense growth in 2024, which will help mitigate margin pressure. This outlook is partly due to industry-wide job cuts, in addition to potential higher interest rates.
February 13, 2024 | 7:54 pm
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The SPDR S&P 500 ETF Trust (SPY) may see positive sentiment as Fitch's forecast suggests a healthier banking sector in 2024, potentially boosting overall market confidence.
SPY, which tracks the S&P 500, is likely to be positively impacted by the forecast of lower expense growth for U.S. banks, as the banking sector is a significant component of the index. Improved efficiency and potential for higher interest rates suggest a stronger financial sector, which could enhance investor confidence in the broader market.
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