IG market strategist Yeap Jun Rong wrote in a report that local Banks may still be the "main driver" for further increases in the Straits Times Index. He added that concerns about the possible rapid decline in Banks' interest income during the Federal Reserve's interest rate cut cycle have eased. Yeap stated that so far, US data indicates that the economy is resilient, and persistent 'last mile' inflation still exists, supporting the Federal Reserve to cut rates at a more gradual pace. He further noted that the view that interest rates will remain high for a longer time should continue to support the Banking industry. The Straits Times Index fell 0.8% to 3856.17 points, but has risen 1.8% year-to-date.