Sep Rate Cut to Unleash New Banking Bull Run?

Investors are laser-focused on one date that could ignite the next major rally for bank stocks - September's pivotal Fed meeting.

The current betting line has the Federal Reserve slashing rates for the first time in over a year when officials next convene. And if that long-awaited pivot arrives, it could flip the switch on a banking bonanza.

Regime Change At Federal Reserve? 

The Fed just began the rollout of a new technology that'll "shake the US financial system".

It'll likely go down in history as the biggest change to money since Western Union launched its "lightning lines" in the early days of the telegraph.

Here's everything you need to know (including three steps to take to profit).

Why? Because lower rates will be music to the ears of the big banks like JPMorgan (JPM), Wells Fargo (WFC) and Bank of America (BAC). Their stocks have already doubled the S&P's gains this year on optimism around a Fed easying cycle finally arriving. But the real fireworks could be just getting started.

According to top analyst Gerard Cassidy, the Fed's anticipated rate-cut path "really bodes well" for this group over the next 12 months as lending profitability surges. No surprise, then, that the big boys are preparing for an epic Q3 earnings blowout when they report in October.

But the smaller regionals could be the bigger beneficiaries from a September surprise. After getting clobbered by soaring funding costs, the "sooner rate cuts come, the better" for this beaten-down bunch, sources say. An early September rate breaker would be a dream scenario to reignite their lending engines.

The clock is ticking toward the biggest risk/reward event of 2023 for bank investors. A hawkish hold could ignite another sell-off pummeling this year's outperformers. But a dovish pivot to kickstart rate cuts could be the starter's pistol on a banking bull run for the ages.

Mark those calendars and prep those buy lists. Because if the Fed embraces its softer side next month, some of the biggest winners could be the stocks left for dead just months ago.