A rally that began late this morning among bank stocks has shown remarkable staying power, propelling some beaten-down names like Bank of America (BAC) and Morgan Stanley (MS) in afternoon trading.
BAC jumped 6.3% in late trading, and Citigroup (C) rose 5.5%. Morgan Stanley and JPMorgan Chase (JPM) were up 4.9%.
The exact cause of the rally is a little unclear.
Initially, the market reacted negatively to a decision by the ECB to leave interest rates stable and pump some more liquidity into the market. But around 11 a.m., bank stocks rebounded. A few global developments may have helped boost the market: the head of Brazil’s central bank said the country will cut its rates, given the low growth in European economies. And earlier in the day, the Bank of England announced that it would add to its existing quantitative easing program.
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