Why Bank Earnings Are Essential to Understanding the Market in 2026 | The Weekly Wrap

Steve Eisman's weekly wrap-up focuses on the first week of earnings season, particularly the banks, and connects themes from 2025 with broader structural market trends. He highlights the K-shaped economy, AI's dominance, private credit concerns, and affordability issues. Eisman points out that tech's increasing influence contrasts with the struggles of the bottom 80-90% of consumers facing inflation. He also addresses potential opportunities in homebuilder stocks amid President Trump's affordability initiatives, and the criminal investigation into Fed Chairman Powell. Bank earnings are analyzed based on investment banking and regional banking models, noting strong investment banking results and expanding net interest margins, but also high valuations.