Banks: The Overlooked Beneficiary Of The AI Capital Cycle

Financials sector has been the second worst-performing group within the S&P 500 on a year-to-date basis, returning 2.3% versus 9.8% for the overall market. As energy prices have remained elevated and inflationary risks have caught the attention of the Federal Reserve, markets have pivoted to pricing in a more hawkish policy rate path this year.