Financial stocks underperform broader market as ​oil shock fans inflation worries

Wells Fargo & Co

09/03/2026 15:03

** Financial stocks start week in the red, underperforming broader markets as soaring oil prices fan inflation worries

** S&P 500 Financials .SPSY slips 2.3%, vs. 0.8% decline in the S&P 500 .SPX

** JPMorgan Chase JPM.N down 2.8%, Wells Fargo WFC.N falls 4.2%, Bank of America BAC.N slips 3.6%

** Citigroup  C.N down 3.4%, Morgan Stanley MS.N falls 3%, Goldman Sachs GS.N down 2%

** S&P 500 Banks index .SPXBK down 3.1%, hitting a more than six-month low

** "Each 10% increase in oil prices should translate to a ~10bp gain in headline PCE inflation and a 15-20bp drag on GDP growth" - J.P. Morgan

** The sharp rise in oil prices coupled with job losses has raised prospects of stagflation, or even a recession, and impacted investor appetite for bank stocks, analysts say

** Management updates later this week at the RBC Global Financial Institutions Conference will be in sharp focus as investors weigh rising macro risks

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))