Key Takeaways Financials gained 14.5% in 2025, with the S&P 500 Banks Index up 31.6% on falling rates and rising optimism.Citigroup, BNY Mellon and Northern Trust each jumped over 35% on improving fundamentals and cost control.Fed cuts, rising NIMs and M&A rebound are expected to support stronger bank earnings into 2026.The S&P 500 Index is set for another year of double-digit gains, building on its strong 23.3% rally in 2024 and 24.2% in 2023. The index has gained 17.7% as of Dec. 29, 2025.From post-electi ...