Investors are pushing bank stocks higher. Analysts are urging caution.

Investors pushed bank stocks higher last week, riding a stock market rally fueled by hopes that the Federal Reserve might be done raising interest rates and that a “soft landing” in the US economy was now possible.

Last Tuesday, after inflation data showed pricing pressure cooling quicker than expected, two major indexes that track the banking industry had their biggest single-day jumps since May 2020.

These same indexes – KBW Nasdaq US bank index (^BKX) and the KBW Nasdaq US regional bank…