Bank stocks have outperformed the broad market with Goldman Sachs up 23% and JPMorgan Chase up 22% in the first half of 2025.

Goldman SachsGS led the Dow Jones Industrial Average higher on Monday morning after it cleared the Federal Reserve's stress test with flying colors. Analysts also placed Wells FargoWFC and M&T BankMTB among the biggest winners of the Fed's annual test,

Get ready for a share-buyback—and dividend—bonanza. That’s what analysts predict is coming, after the Federal Reserve found the U.S.'s biggest banks are well positioned to weather a severe downturn, based on its regular stress test.