Top U.S. banks increased their prime lending rates to 7% after the Federal Reserve's latest hike, yet shares across the sector fell as markets reacted to broader economic concerns.
Goldman Sachs fell 4% amid the post-Fed rate hike selloff in bank stocks.
Bank of America lifted its prime rate to 7% yet closed 2.7% lower on the day.
Citigroup raised its prime rate to 7% and saw shares fall 2.4%.
Wells Fargo raised its prime rate to 7%, but its stock dropped 3%.
Morgan Stanley slipped 1.9% as broader banking shares fell after the Fed's rate hike.
JPMorgan raised its prime rate to 7% after the Fed hike, but shares ended down 1%.
KeyCorp is one of the banks raising its prime rate to 7% following the Fed's move, catching negative market sentiment.
Huntington Bancshares raised its prime rate to 7% as part of the industry-wide move, with no specific price change mentioned.
Fifth Third Bancorp raised its prime rate to 7% after the Fed hike, aligning with other banks in a falling stock environment.
Truist Financial raised its prime rate to 7% and was part of the group of banks whose stocks ended lower.
M&T Bank CEO commented on the economy at the Barclays conference, but the stock's specific reaction was not reported.
Major U.S. financial institutions, including JPMorgan and Bank of America, have raised their prime lending rates to 7% following the Federal Reserve's latest interest rate hike. Despite the potential for increased net interest income, banking stocks faced a broad selloff, with Goldman Sachs and Wells Fargo leading the decline as investors weigh the economic impact of tighter monetary policy.
The prime rate is tied to the federal funds rate; banks adjust it to maintain margins on consumer and business loans, which typically helps net interest income.