• November 6, 2024

3 reasons bank stocks soared after Trump's reelection

Bank stocks popped after former President Donald Trump secured a second term in the White House. The financial select sector SPDR fund (XLF) rose more than 6% in intraday trading on Wednesday, with names like JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), and Goldman Sachs (GS) gaining. KBW managing director David Konrad joins Josh Lipton on Asking for a Trend to discuss why Trump's win sent the sector higher and what bank investors are looking for from his second term. Konrad says, "There's three main factors, all kind of surrounding deregulation to some extent," that sent bank stocks higher: less antitrust regulation leading to more mergers, lower capital constraints, and less pressure from the Consumer Financial Protection Bureau (CFPB) on consumer fees. "The other factor would be a little bit of the concern of the inflationary ramifications of the Trump administration, potentially, and so people are looking for more asset-sensitive names for kind of a higher for longer, and those are really the true outperformers that we saw today." Watch the video above for more about Konrad's expectations for the banking sector under Trump. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. This post was written by Naomi Buchanan.

  • November 6, 2024

Bank stocks rallying around odds of Trump deregulations

The banking sector flew into positive territory this morning on the news that Donald Trump emerged victorious in the 2024 presidential election. Big Banks — including JPMorgan Chase (JPM), Goldman Sachs (GS) Morgan Stanley (MS), Wells Fargo (WFC), Bank of America (BAC), and Citigroup (C) — are likely seeing upside to possible deregulation under Trumps second term. "It is a reflection that the Biden administration's financial services agenda is kaput, and we can make the argument that it was kaput before today because the banking industry has had a lot of luck in locking up some of the most important or significant regulations proposed by the Biden administration in court across the country," Punchbowl News financial services Reporter Brendan Pedersen tells Catalysts. "At this point, all those court challenges might as well be over because Trump administration regulators will come in and just pull them back." Pedersen discusses Senator Tim Scott's (R-SC) likely role as the next Senate Banking Committee chair, emphasizing a notable tone shift for the committee from Ohio Senator Sherrod Brown's (D) leadership. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Luke Carberry Mogan.