Major banks will begin reporting quarterly earnings on Tuesday, marking the start of a new earnings season. These results will offer the first broad look at how rising bond yields are affecting the economy.
Higher yields have pushed borrowing costs up for consumers and businesses. Investors are watching for signs of stress in lending activity and credit quality.
Banks sit at the center of the financial system. Their earnings reveal how demand for loans is holding up as rates climb.
Analysts expect mixed results across the sector. Some banks may benefit from wider interest margins on loans.
Others could face losses on bond portfolios hurt by higher rates. Deposit costs have also risen as savers seek better returns.
The reports will show whether tighter financial conditions are slowing business investment. They will also indicate if consumers are still borrowing and spending.
Tuesday’s results from the largest banks set the tone for the rest of earnings season. Smaller banks and other industries will follow in the coming weeks.
