Bank Stocks Lag Broader Market This Year Despite May Recovery; Participation Seen as Key to Validating Economic Outlook

Bank stocks have lagged the broader market this year despite recovering from May lows.

Some strategists say bank stocks need to participate in any market recovery to validate the economy won't enter a recession.

Bank stocks have underperformed the S&P 500 during the recent market slide over the past month.

The path forward for banks depends on the Fed's interest rate path going forward.

Earnings season kicks off next week, with JPMorgan Chase reporting Q3 results on Friday.