Regions Financial, FirstSun fall as higher-for-longer Fed outlook pressures bank stocks

Regions Financial Corp. and FirstSun Capital Bancorp shares fell May 14, 2026, after stronger jobs and inflation data pushed Wall Street banks to delay forecasts for Federal Reserve rate cuts to December 2026 from September 2026, lifting Treasury yields and pressuring lenders. Goldman Sachs and Bank of America were among firms revising their rate outlooks. Bank of America analysts also said the market may be underpricing the risk of another Fed rate increase. A prolonged higher-rate environment can support bank net interest margins but may weigh on loan demand, limiting revenue growth. FirstSun shares traded at $35.92, down 5% year to date and 13.2% below their 52-week high of $41.40 set in October 2025. The stock had fallen 6% 12 days earlier after first-quarter 2026 adjusted earnings of 84 cents a share missed expectations of about 87 cents, with net charge-offs rising to $10.6 million from $0.6 million in the prior quarter.