Bank stocks and the broader markets fell Monday on investor jitters over the timing of an economic recovery.

The KBW Bank Index fell 4.5%, the Dow Jones industrial average 2% and the Standard & Poor's 500 index 2.43%.

Raymond James & Associates analyst Anthony Polini wrote in a note Monday that his team remains bullish on the financial services industry's "absolute and relative investment appeal" but thinks that near-term profit-taking is likely.

"Although volatility could remain high over the near term as stock prices track mixed economic data, we believe the rally in bank stocks still has a long way to go," Polini wrote.

Decliners went across the board.

JPMorgan Chase & Co. fell 4.1%, Bank of America Corp., 4.8%; Wells Fargo & Co., 5.2%; PNC Financial Services Group Inc., 4.7%; U.S. Bancorp, 4.9%, and Citigroup Inc., 4 cents, to $4 a share.

Among the regional banking companies, SunTrust Banks Inc. fell 4.7%; Capital One Financial Corp., 2.9%; Fifth Third Bancorp, 7.3%; First Horizon National Corp., 4.4%, and Huntington Bancshares Inc., 39 cents a share, to $4.20.

BB&T Corp. fell 6.4%, after the Winston-Salem, N.C., company said Monday that it would raise $750 million in a common stock offering to replenish its capital after buying the banking operations of Colonial BancGroup Inc. in Montgomery, Ala., on Friday in a government-assisted deal.

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