US Regional Bank Shares Rally to Record High as Rotation Extends

US regional bank stocks extended their recent rally Wednesday to reach an all-time intraday high as the rotation out of large caps and into smaller lenders intensifies.

The KBW Regional Banking Index surged as much as 2.2% Wednesday, surpassing a record set in January 2022. Shares of Pinnacle Financial Partners Inc., Wintrust Financial Corp. and Columbia Banking System Inc. were among the top performing stocks on the 49-member index.

Investors have been rotating out of the big money-center banks and into the smaller and medium regional lenders this year. The KBW regional index rose 7.3% ...