As energy prices rise, fear will dissipate from the financial sector, according to one executive.
"The Fed ultimately will raise rates," David Katz, Matrix Asset Advisors president and chief investment officer, told CNBC on Friday. "The market is up about 12 percent in the last six weeks," he said, adding that the factors that have driven the market surge will reach banks.
Katz's comments came as the Federal Reserve lowered its hike projections for the year, on Wednesday. The financial sector, however, has been the worst-performing sector of the S&P 500 for most of 2016, down about 5 percent year to date. The sector traded up slightly on Friday.
"The fear a month ago was their energy portfolios would be bad, but with energy prices rebounding that fear gets taken off the table," he told "Closing Bell."