Morgan Stanley's Investment Banking Rebounds, Boosting Profits
Bank ETFs, including the Invesco KBW Bank ETF and the SPDR S&P Regional Banking ETF, are surging as investors analyze the second-quarter earnings results of major banks such as Bank of America and Morgan Stanley. The Invesco KBW Bank ETF is on track for its best monthly performance since February 2021, while the SPDR S&P Regional Banking ETF is experiencing its best daily performance since June 6. Bank stocks are outperforming the S&P 500, with Bank of America and Morgan Stanley being significant holdings in the Invesco KBW Bank ETF. Despite the recent bounce, bank ETFs are still down for the year due to regional bank failures earlier in 2023.