Big U.S. bank stocks are on pace for longest weekly losing streak since 2008

Big U.S. bank stocks are headed for a sixth straight week of losses, according to Bloomberg, a run that would be the longest since 2008.

The 24-member KBW Bank Index is down 1.1% this week and has lost 13% since its record in August, which puts it in correction territory.

Citigroup $C, State Street $STT, Bank of America $BAC and Morgan Stanley $MS are among the index's worst performers this week. JPMorgan $JPM Chase stock is up 1.7% for the week.

Bank earnings reported this week were mixed, according to Bloomberg. "Third-quarter results did little to reverse the weakness, with stable operating leverage but mixed trading as fixed-income results disappointed despite strength in equities," said Bloomberg Intelligence analyst Herman Chan.

Worries about how artificial intelligence will disrupt financial services have weighed on the sector, according to Bloomberg. This week's hot inflation reading deepened unease over how forcefully the Federal Reserve will move to rein in stubborn price pressures, according to Bloomberg.

"Big-bank stocks are facing a confluence of concerns, with a higher-for-longer rate backdrop raising the risk of slower economic growth and higher loan losses," Chan said, according to Bloomberg.

Chan said AI companies are facing higher funding costs, which is casting doubt on how long the capital-markets revenue linked to the AI infrastructure buildout can last. He added that agentic AI could eventually threaten the steady, inexpensive deposits that underpin bank profitability.

The index underperformed the S&P 500 on 18 of the 21 trading sessions following the Fed's rate increase on Sept. 16, Barclays analyst Jason Goldberg wrote in a Wednesday note, according to Bloomberg. Goldberg said nothing like that has happened in any rolling 21-session window since the index's debut in May 1992.