US Bank Stocks Hold Up Better Than the Market After Election

US Democrats’ control of Congress has increased political pressure on large banks.

Since the election, the KBW Nasdaq Bank Index has fallen 1.7%, less than the S&P 500’s 2.5% decline.

Bank shares have held up better than broader stocks, and far better than the Philadelphia Semiconductor Index, which fell more than 11%.

Congress can pressure banks, but the Federal Reserve has more influence over capital rules that affect their profitability.

Analysts say slower AI investment could weigh on bank earnings and valuations more than political pressure does for now.

Bank stocks trade at about 1.5 times book value, above their historical average.