By Georgie McKay | Updated on Jun 11, 2026 at 09:54 PM
Shares of US lenders reached their highest levels ever on Thursday, as investors turned optimistic about a potential deal to stop the fighting in Iran and SpaceX’s record IPO.
The KBW Bank Index jumped 1.9% to close at 176.73, topping the previous high of 176.40 set on Feb. 9. All 24 banks in the benchmark closed higher, led by top performers Citigroup Inc. and Goldman Sachs Group Inc. The broader market also rallied, with the S&P 500 Index climbing 1.8%.
The move started at around 1:30 p.m. in New York when stocks jumped and oil sank after President Donald Trump canceled military strikes on Iran and signaled that the countries are close to a deal, fueling hopes for an end to the war that has roiled global markets.
Read: Trump Cancels Planned Iran Strikes in Latest Reversal ·
Sentiment around bank stocks is also rising due to the initial public offerings of closely held tech giants SpaceX, Anthropic and OpenAI. Goldman Sachs Group Inc. and Morgan Stanley shares are hovering near record highs after both were picked as co-leads on Elon Musk’s SpaceX IPO. Anthropic, which makes the Claude chatbot, and ChatGPT creator OpenAI have also picked Morgan Stanley and Goldman to lead their deals public offering. SpaceX raised $75 billion on Thursday, making history with the biggest-ever IPO, according to a statement on its website Thursday.
Read: SpaceX’s IPO Raises $75 Billion in Biggest Debut of All Time
“Strength in bank stocks reflects potential resolution of the Middle East conflict and general equities optimism ahead of the SpaceX IPO,” said Bloomberg Intelligence analyst Herman Chan.
Earlier in the week executives at US bulge-bracket banks lauded the resilience of consumers at the Morgan Stanley US Financials Conference in New York. Presentations from executives “offered positive commentary on markets activity, loan growth, credit quality and resilience in consumer spending,” Chan said. The operating backdrop for banks also looks constructive, he added.
At JPMorgan Chase & Co., credit card charge-offs are at the low end of its expected range this year, said Marianne Lake, who runs the company’s consumer and community bank. And at Wells Fargo & Co., consumer card spending was up 9% year-on-year in May while credit performance is better-than-expected, CFO Mike Santomassimo said.