Financial stocks could be in for a rocky ride if the market is faced with more weak economic data, and banks could bear the brunt of it, according to some experts.

Even as financial stocks recovered from last week’s downturn and the broader stock market got a boost from Monday’s Supreme Court ruling in favor of George W. Bush in the fight for the Presidency, some strategists are predicting a weakening economy will drag financial stocks down in the coming months. Last week’s report that the gross domestic product annual growth rate slowed to 2.4% caused concern. Some analysts said that a predicted economic soft landing may evaporate, which would cause a slowdown in earnings and increased concerns about credit quality in the banking sector.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.