All 101 stocks within the State Street SPDR S&P Bank ETF (KBE) declined on Friday. The drop was driven by a widening spread between 2-year and 10-year U.S. Treasury yields, a pattern often referred to as a "bear steepener," which typically signals rising market expectations for future inflation. A steeper yield curve can compress banks' net interest margins, devalue assets, increase credit risk, and dampen loan demand. Among the decliners, Western Alliance Bancorp fell nearly 12%, Rocket Companies dropped 4%, and ServisFirst Bancshares declined close to 5%.
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