Bank ETFs Decline Over the Last Month: Are Gains on the Horizon?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Source: NASDAQ.COM
Interest Rates and Market Conditions: Interest rates are declining while U.S.-China trade tensions rise, leading to volatility in markets. Despite concerns over non-bank lenders, major U.S. banks reported positive earnings, with a significant portion exceeding EPS and revenue estimates.
Credit Concerns and Bank Performance: Recent warnings from JPMorgan Chase's CEO about economic vulnerabilities have resurfaced credit concerns, particularly affecting regional banks like Zions Bancorporation and Western Alliance, which experienced significant stock declines.
Financial Sector Growth: The finance sector has shown strong earnings growth of over 20% year-on-year, with a favorable regulatory environment and improving credit demand, positioning it well compared to the broader S&P 500 index.
Future Outlook for Financials: With the Federal Reserve cutting interest rates, the banking sector could benefit from a steepening yield curve, enhancing net interest margins, provided that healthy credit demand continues to support this growth.
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Analyst Views on MS
Wall Street analysts forecast MS stock price to fall
14 Analyst Rating
7 Buy
7 Hold
0 Sell
Moderate Buy
Current: 193.350
Low
132.00
Averages
185.00
High
219.00
Current: 193.350
Low
132.00
Averages
185.00
High
219.00
About MS
Morgan Stanley is a global financial services company. The Company is engaged in providing a range of investment banking, securities, wealth management and investment management services. Its segments include Institutional Securities, Wealth Management and Investment Management. Its Institutional Securities segment provides a variety of products and services to corporations, governments, financial institutions and ultra-high net worth clients. Its Wealth Management segment provides an array of financial services and solutions to individual investors and small to medium-sized businesses and institutions. Its Investment Management segment provides a range of investment strategies and products that span geographies, asset classes, and public and private markets to a diverse group of clients across institutional and intermediary channels. Its investment banking services consist of capital raising and financial advisory services, including the underwriting of debt and other products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Loan Demand: During 1Q26 earnings calls, many management teams highlighted improving loan demand, which has intensified competition and allows banks to cover the costs of raising CD yields through increased interest income from loans, thereby enhancing profitability.
- Federal Reserve Policy Impact: The Federal Reserve maintained interest rates in April, with three officials stating they do not believe it is appropriate to signal future rate cuts, which may influence banks' rate strategies and keep CD rates stable or slightly higher.
- Inflation Concerns: While the increase in CD rates provides investors with extra earnings on cash set aside for short-term purposes, these yields are still insufficient to keep pace with long-term inflation, prompting investors to carefully evaluate their investment strategies.
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- Rate Increases: According to Morgan Stanley's analysis, several banks raised their certificate of deposit (CD) yields in April, with rates for CDs maturing in one year or less increasing by 6 basis points to 3.71%, and 13- to 36-month rates rising by 1 basis point to 2.62%, indicating intensified competition among banks to attract deposits.
- Growing Loan Demand: During 1Q26 earnings calls, many management teams highlighted improving loan demand, which has intensified competition and allows banks to cover the costs of raising CD yields through increased interest income from loans, thereby enhancing profitability.
- Federal Reserve Policy Impact: The Federal Reserve maintained interest rates in April, with three officials stating they do not believe it is appropriate to signal future rate cuts, which may influence banks' rate strategies and keep CD rates stable or slightly higher.
- Inflation Concerns: While the increase in CD rates provides investors with extra earnings on cash set aside for short-term purposes, these yields are still insufficient to keep pace with long-term inflation, prompting investors to carefully evaluate their investment strategies.
See More
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- Significant Revenue Growth: Appian's Q1 total revenue rose 21% year-over-year to $202.2 million, surpassing market expectations of $191.8 million, demonstrating the company's resilience and growth potential in a competitive SaaS market.
- Cloud Subscription Revenue Surge: Cloud subscription revenue increased by 25% to $124.5 million, reflecting the company's success in AI-inclusive licensing, with nearly 40% of customers opting for these products, further solidifying its market position.
- Improved Profitability: Adjusted EBITDA rose from $16.8 million to $26.6 million, with a GAAP operating profit of $3.2 million, indicating significant improvements in profitability through cost-cutting and enhanced market efficiency.
- Upgraded Full-Year Guidance: Appian raised its 2023 revenue forecast to $819 million to $831 million, up from the previous $801 million to $817 million, with expected EPS growth of approximately 60%, reflecting strong confidence in future growth.
See More
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- Improved Profitability: Adjusted EBITDA rose from $16.8 million to $26.6 million, reflecting the company's success in cost control and market efficiency, further strengthening its position in the competitive SaaS landscape.
- AI-Driven Customer Growth: Nearly 40% of customers have purchased AI-inclusive license tiers, indicating significant progress in partnerships with Fortune 500 companies and government agencies, accelerating business growth.
- Upgraded Full-Year Guidance: Appian raised its 2023 revenue forecast to $819 million to $831 million, up from the previous $801 million to $817 million, with expected EPS growth of approximately 60%, highlighting the company's strong growth trajectory ahead.
See More
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See More
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- Order Volume Surge: Total orders rose by 27% to 933 million, with marketplace gross order value jumping 37% to $31.6 billion, indicating that the company is not only adding orders but also capturing larger ones, particularly in the fast-growing grocery and retail categories.
- Profit Pressure Intensifies: Despite revenue growth, diluted EPS fell from $0.44 to $0.42, primarily due to integration costs from Deliveroo and ongoing investments in autonomous delivery, highlighting the profit pressures faced during expansion.
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See More
