U.S. banks may enjoy expanding net interest margins as funding costs decrease. This trend arises from replacing maturing earning assets with higher-yielding loans and securities. However, challenges loom. Waning consumer sentiment and anxiety surrounding tariffs could dampen growth. Lower investment activity and increased delinquency rates might follow. Investors should keep an eye on these economic indicators as they could impact U.S. banks in the coming months. Understanding these dynamics is crucial for making informed financial decisions.