US big banks rise after Fed's jumbo rate cut
** U.S. large-cap bank stocks rise in premarket trading after the U.S. Federal Reserve cut interest rate by 50 basis points on Wednesday, the first cut since 2020
** JPMorgan Chase JPM.N, Wells Fargo WFC.N, Bank of America BAC.N, and Citigroup C.N rise 1.4%, 1.6%, 1.9% and 1.8%, respectively
** Banks poised to benefit in the longer run as rate cuts would help ease deposit costs, which has pressured net interest margin - a key measure of lending profitability
** But rate cuts could drive temporary headwinds for banks as interest income is expected to take a hit as the Fed continues to ease its monetary policy
** Banks will be proactive in lowering deposit costs and interest income growth from here on will be largely dependent on that - brokerage KBW
** S&P 500 Banks Index .SPXBK, which tracks large-cap bank stocks, has gained 17.5% YTD
Reporting by Arasu Kannagi Basil in Bengaluru
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