US bank stocks outperformed the S&P 500 with a 4.5% return in July, led by BCB Bancorp and Pathward Financial.

In July, US bank stocks outperformed the broader market, with the S&P US BMI Banks index gaining 4.5% compared to a 0.1% decline in the S&P 500. BCB Bancorp Inc., based in Bayonne, New Jersey, was identified as the least expensive bank by price-to-adjusted tangible book value, while Pathward Financial Inc. became the most expensive. This performance highlights the strength of the banking sector amid broader market challenges, signaling potential investor confidence in banks relative to other sectors.