NEW YORK, August 13, 2026, 10:12 EDT — Shares of Goldman Sachs and Morgan Stanley outpaced other major lenders by 1.5 percentage points after the U.S. producer price index reading, with broader bank stocks showing mixed performance.
- U.S. shares climbed as July producer prices remained flat.
- Banks specializing in capital markets surpassed major lenders by roughly 1.5 percentage points.
- Declining Treasury yields deepened divisions within the banking sector.
U.S. bank shares moved in different directions on Thursday morning while the broader market advanced. Goldman Sachs Group NYSE:GS and Morgan Stanley NYSE:MS each rose roughly 1.2%. Meanwhile, a trio of major lenders slipped by an average of 0.3%.
The initial spread stood at around 1.5 percentage points at approximately 10:09 EDT. The gap indicates that investors viewed weaker inflation figures as a mixed development for banks. Reduced yields could encourage deal flow, yet they might weigh on lending margins.
The producer price index for July held steady compared to June, easing worries among economists who had expected a stronger figure. Prices for final-demand goods declined by 0.7%, whereas services edged up by 0.2%. The yearly headline rate stood at 4.7%.
| Market signal | Thursday morning level or change | Investor read-through |
|---|---|---|
| S&P 500 | +0.4% | Overall risk sentiment stronger |
| Dow Jones Industrial Average | +0.2% | Large caps moved higher |
| Nasdaq Composite | +0.4% | Tech and growth stocks climbed |
| 10-year Treasury yield | 4.64% | Declined after PPI data |
| 30-year Treasury yield | 5.214% | Fell from 5.249% in previous session |
| July headline PPI | 0.0% month over month | Inflation seen softer than expected |
The S&P 500, Dow and Nasdaq all climbed in the opening hour. The yield on the 10-year Treasury dipped to 4.64%. The 30-year Treasury yield declined to 5.214%, down from 5.249% on Wednesday.
| Bank | Morning change | Business tilt |
|---|---|---|
| Goldman Sachs NYSE:GS | +1.28% | Focus on capital markets |
| Morgan Stanley NYSE:MS | +1.20% | Capital markets, wealth management |
| Citigroup NYSE:C | +0.27% | Broadly diversified |
| Bank of America NYSE:BAC | -0.15% | Major lending operations |
| JPMorgan Chase NYSE:JPM | -0.26% | Large, diversified lending |
| Wells Fargo NYSE:WFC | -0.49% | Major lender |
Fee-focused banks benefited from the price movement. Shares in Goldman advanced 1.28%, and Morgan Stanley was up 1.20%. JPMorgan, Bank of America, and Wells Fargo all traded lower.
This represented a quick turnaround. On Wednesday, the KBW Nasdaq Bank Index rose 1.07%, ending the session at 193.21. The index tracks 24 major U.S. banks and thrifts.
| Bank | Change on Wednesday | Change early Thursday | Movement over two sessions |
|---|---|---|---|
| JPMorgan | +0.87% | -0.26% | -1.13 pts |
| Bank of America | +1.27% | -0.15% | -1.42 pts |
| Wells Fargo | +1.69% | -0.49% | -2.18 pts |
| Citigroup | +1.33% | +0.27% | -1.06 pts |
| Four-bank average | +1.29% | -0.16% | -1.45 pts |
The four major banks posted an average increase of 1.29% on Wednesday. On Thursday morning, their average shift was minus 0.16%. That initial change represented a swing of 1.45 percentage points.
Net interest income continues to be the main point of differentiation. Declining market rates have the potential to cut funding costs, while also leading asset yields to reset at lower levels. Outcomes hinge on deposit pricing, loan growth, and the structure of each bank’s hedge book.
Latest earnings indicated uneven sensitivity. Analysts predicted small margin drops at JPMorgan and Wells Fargo, while anticipating gains for Bank of America. The average margin across the top four banks was projected at around 2.36%.
| Bank | Buy | Hold | Sell | Average target | Indicated upside |
|---|---|---|---|---|---|
| JPMorgan | 10 | 6 | 0 | $376.00 | 3.2% |
| Bank of America | 14 | 3 | 0 | $68.50 | 6.1% |
| Wells Fargo | 9 | 6 | 0 | $100.13 | 13.1% |
Analyst sentiment towards the three lenders on Wall Street is generally upbeat. Bank of America received 14 buy recommendations and no sell ratings. Wells Fargo offers the highest potential return, with an implied upside of 13.1%.
JPMorgan CEO Jamie Dimon issued a warning last month, stating that conditions were “close to as good as it gets.” He questioned how long this situation might continue. Dow Jones Newswires report
The milder PPI report failed to eliminate concerns about inflation. Excluding food, energy and trade services, prices increased by 0.4% in July. On an annual basis, this measure climbed 4.7%.
Risks: Initial market movements may shift direction rapidly. Changes in rate forecasts, oil values and new economic growth figures could alter the bank-sector spread ahead of the session’s end.
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