Still, Jason Hunter, a technical analyst at JPMorgan, said in a note Thursday the recent breakdown in the stock market is not the start of a “lasting and material correction.”

“While we have been growing more concerned about a summer top pattern and potential correction into the fall, that medium-term bearish reversal pattern has not developed yet,” Hunter said. “Furthermore, the current weakness is in part driven by the bearish global bond price action.”

Yields across the globe have been spiking higher lately amid hawkish rhetoric from key central bank officials, including European Central Bank President Mario Draghi.

The 10-year German bund yield rose to about 0.46 percent from around 0.25 percent this week. U.S. Treasury yields followed their German counterparts higher, with the benchmark 10-year yield climbing to 2.28 percent from 2.15 percent.

Higher yields have helped bank stocks this week, with the SPDR S&P Bank exchange-traded fund (KBE) advancing 4 percent in the period.

The banks also received a boost after the Federal Reserve cleared capital returns programs for the big banks.

The central bank did not object to any of the buybacks or dividend hikes from the 34 banks it reviewed during the second phase of its annual stress test. This is the first time in the seven-year history of the tests implemented in the wake of the financial crisis that all banks have passed.

“Banks have a lot going for them,” said Bruce Bittles, chief investment strategist at Baird. “Not only could the economy be getting better and rates are rising, but regulations seem to be going down.”

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