Why Shares of Regional Banks Fell in March
Shares of regional banks joined the broader parade of stocks that plunged in March, with investors running for the exits as the impact of the COVID-19 coronavirus pandemic became clear. Banks make their money based on the amount of interest they can charge when making loans, and if the economy ends up in a recession, bank profits are going to take a hit.
Shares of Truist Financial (NYSE: TFC) fell 33.2% for the month, according to data provided by S&P Global Market Intelligence, while shares of Huntington Bancshares (NASDAQ: HBAN) fell 33.1% and M&T Bank Corp. (NYSE: MTB) and CNB Financial (NASDAQ: CCNE) were down 26.3% and 24.7%, respectively.
March was one of those months where nothing seemed to go right for investors. The pandemic caused markets to fall and brought the economy to a halt, causing jobless claims to skyrocket and putting the U.S. economy on course for a recession.
Source Fool.com
