Bank stocks' recent rally came to an abrupt halt Thursday morning after the Commerce Department reported unexpectedly strong demand for the construction of new homes in April, depressing the 30-year Treasury bond.

In the last eight trading days through Wednesday, the Standard & Poor's index of major banks rose 5.6% amid signs of modest economic growth. The broader S&P 500 rose 3.8% in the period .

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.