The Financial Post reports in its Friday edition that the recent weakness in artificial intelligence high flyers has investors rotating into a less glamorous corner of the market: financial stocks. A Bloomberg dispatch to the Post says the group has been the S&P 500 index's second-biggest gainer in the past three months, trailing only health stocks. That has put the KBW Bank Index of the largest lenders on track to beat the broader equities gauge for a third consecutive year and would mark the index's longest streak of outperformance since 2003. As worries are swirling around lofty valuations of tech megacaps, investors are moving money into companies that provide all the cash for the AI buildout. To Wall Street, rock-solid earnings in the sector coupled with signs the U.S. economy is humming along mean the momentum in banks has more room to run. UBS Group AG analyst Erika Najarian warned of some volatility ahead. Much of the second-quarter strength in banks was driven by capital markets, she said, and "any indication that the capital markets environment is deteriorating could weigh on the group." The KBW Bank Index has advanced in each of the past four sessions, widening its rally this year to 18 per cent.