All 25 of the largest U.S. bank stocks by market capitalization lost ground in a two-day market sell-off, nearly erasing all of 2018's gains before prices appeared to find a floor Feb. 6.
The SNL U.S. Bank and Thrift Index lost 6.9% between Feb. 1 and market close Feb. 5. Wells Fargo & Co. led the bank industry losses as share prices fell 11.2% over the last two trading days. On Friday, Feb. 2, the Federal Reserve announced a new consent order that requires Wells Fargo to keep its assets below year-end 2017 levels and replace four board members by the end of 2018.
The bank industry sell-off is part of a broad market swoon that came amid investor fears that rising inflation would force the Federal Reserve's hand on interest rates. Over the last two trading days, the S&P 500 has fallen 6.1%, pushing the index into negative territory for the year through Feb. 5.
The CBOE Volatility S&P 500 Index, more commonly known as the "VIX," hit 37.3 at the end of trading Monday, Feb. 5, the first time the index has closed above 20 since before the U.S. presidential election and the highest level since Aug. 24, 2015.
Despite the sizable losses of the last two days, only four of the top 25 bank stocks are negative for the year through Feb. 5 — Wells Fargo, Citigroup Inc., Capital One Financial Corp. and Northern Trust Corp.

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