The selloff in bank stocks continued Tuesday, and further losses loom in anticipation of higher interest rates and a weakening economy.

For the second straight day, the American Banker index of bank stocks performed worse than the overall market. The index fell 0.73%, compared with a 0.12% gain -- to 3,232.22 -- in the Dow Jones industrial average.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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