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    • Stock Market Today: Dow extends gains as S&P 500 hits 6,000 milestone
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    Stock Market Today: Dow extends gains as S&P 500 hits 6,000 milestone

    Harry Posted on

    The KBW Nasdaq Bank Index continued its hot rally Monday as an analyst from Hovde Research said a benchmark of 24 major bank stocks remained undervalued.

    The KBW Nasdaq Bank Index rose another 2.5 percent on Monday after rising 0.3 percent on Friday. The index fell 2.7 percent on Thursday, but only after it rose 10.7 percent the day after the presidential election.

    Despite strong gains, further valuation gains for the KBW Nasdaq Bank Index are possible based on the index’s performance between 2016 and 2019, when Donald Trump was last in office and before COVID, Hovde analyst Feddie Strickland said in a research note published Monday. 19 epidemics.

    Moreover, the indicator is also trading at a discount to the S&P 500. As of Friday’s close, the KBW Nasdaq Bank Index was trading at 57% of the S&P 500’s forward price-to-earnings ratio of 22.2x. The bank index’s 10-year median is 68% of the S&P 500 level, higher than it is now, Strickland said.

    Meanwhile, the Financial Select SPDR Fund gained 1.6% on Monday, while the SPDR S&P Regional Banking ETF gained 3.3%.

    Harry
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