Shares of US big banks rise after Fed cuts rates

Shares of U.S. big banks rise after the Federal Reserve cuts its benchmark interest rate by 25 basis points

Bank of America BAC.N up 1.6%, Wells Fargo WFC.N and Goldman Sachs GS.N up 1.4% each

Citigroup C.N up 1.2%, Morgan Stanley MS.N up 1% and JPMorgan Chase JPM.N up 0.9%

Lower borrowing rates can help ease deposit costs for lenders while also boosting loan growth

Cheaper capital can also boost business sentiment, potentially leading to an uptick in hiring amid a stalling labor market. Greater hiring can translate into robust consumer spend, boosting transaction volumes at banks

As of last close, the S&P 500 Banks Index .SPXBK up nearly 21% YTD, outpacing a 12.3% gain in the benchmark S&P 500 .SPX