Bank stocks just lost six weeks straight, the longest streak since 2008: Goldman is down 23%

The KBW Nasdaq Bank Index (BKX) has fallen for six straight weeks, through Friday, Oct. 16, by our count of weekly closes from Yahoo Finance. Tuesday's close of 169.58 leaves it 12.5% below its record close of 193.91 on Aug. 14. Over the same stretch the S&P 500 closed at 7,712.57, only about 1.4% under its highest close of the past three months.

The streak is the longest for the index since 2008. In weekly data back to 2001 the only earlier runs of six or more down weeks we found were in 2002 and 2008. One caveat: the sixth week, ending Oct. 9, was a decline of just 0.02%, so the streak is real but its last legs were shallow.

The drawdowns, name by name

Different start dates for each stock explain why these differ slightly from figures circulating on social media; ours are computed from daily closes.

The mechanism: rates

The Fed raised its target range to 3.75%-4% in September (our report). The 10-year Treasury yield peaked this month at 5.31% on Oct. 5, the highest of 2026, and was 5.12% on Oct. 20, according to the Treasury's daily par yield curve.

Higher yields hit banks twice. Bonds already on the balance sheet lose market value, and borrowers are less willing to take new loans at higher rates. The FDIC's Quarterly Banking Profile for the second quarter, dated Aug. 25, put industry unrealized securities losses at $326.7 billion, up from $325.1 billion the quarter before. Those figures predate the October yield peak, so the third-quarter number due around November may be worse. Industry net income that quarter was a healthy $90.1 billion.

What it means

This is a valuation squeeze, not a sign of failing earnings. Unrealized losses only become real if a bank must sell securities, which is why deposit flows matter more than the headline. For a business owner, the practical effect shows up in credit terms: banks under pressure tend to tighten lending standards and price loans higher. Watch the 10-year and the next FDIC report.

Sources: Yahoo Finance daily and weekly price history; U.S. Treasury; FDIC. This is market information, not investment advice.