Interest rates declining favor regional banks, says Fundstrat's Tom Lee on his 2026 outlook

分组1 - The Santa rally is supported by historical data indicating a positive stock market trend during the last week of the year and the first few days of the new year [1] - Professional money managers engage in window dressing, bidding up their winning stocks to enhance their year-end performance [3][4] - There is an expectation of a more dovish Federal Reserve in 2026, which could boost business confidence and lead to a recovery in the ISM index above 50, benefiting traditional sectors like industrials, energy, and basic materials [5][6] 分组2 - Financial services are expected to benefit significantly from advancements in AI and blockchain technology, leading to margin expansion and a potential shift in trading patterns to resemble tech stocks [6][7] - Deregulation efforts by the Federal Reserve could provide a substantial tailwind for banks, particularly as they have faced restrictions since the global financial crisis [8][9] - Regional banks may experience more benefits compared to larger banks as interest rates decline and business activity, including M&A, picks up [11]