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Banks have recently navigated challenges ranging from lawsuits and settlements to adapting payments technology to include crypto, and even broad skepticism in the wake of bank failures. But a strong federal jobs report in early June boosted confidence within the industry, with the market reflecting the positive news at that time.

After two years of high interest rates, investors entered 2024 increasingly concerned about credit deterioration. But loan charge-offs, while up some across the industry, remain low by historical standards. The employment data indicated that this trend could continue, supporting bank earnings as the year progresses.