In a surprising turn of events, the US banking sector exhibited remarkable stability in September, with most institutions experiencing only marginal fluctuations in their stock prices. This subdued reaction came despite a significant 50-basis-point cut in the federal funds rate, which might have been expected to trigger more pronounced market movements. Among the 208 banks tracked, the median month-to-date total return revealed a striking lack of volatility, with the majority of institutions seeing their stock prices shift by less than 3% over the course of the month.
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