The rally is fundamentally sup

The rally is fundamentally supported by strong past quarterly results across profitability and revenue. The key "test" during this earnings season will be whether management guidance confirms the sustainability of these trends. General investors may consider monitoring the specific metrics aligned with each bank's business model—primarily net interest margins and credit trends for diversified banks, and trading/investment banking revenues and ROTE for capital markets-focused firms.

Banks Kick Off 2026 Earnings Season: Can They Pass "Test"?

Bank stocks are hitting fresh highs as earnings season approaches, with JPMorgan Chase, Goldman Sachs, Citigroup, and Morgan Stanley set to report next week. Analysts expect S&P 500 financials to post a 6.7% YoY earnings increase for the December quarter, supported by resilient credit quality, solid trading revenues, and easing rate uncertainty. But with valuations stretched, the focus now shifts to guidance. What’s driving this rally in your view—and heading into earnings, which metrics matter most: net interest margins, loan growth, capital returns, or credit trends?

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