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Investors bet on Trump victory, Wall Street bank stocks rise overnight

AInvestWednesday, Nov 6, 2024 2:10 am ET
1min read

Intelligible Finance learned that major bank stocks in the US rose in after-hours trading as investors expected Trump to win the presidential election. JPMorgan (JPM.US), Citigroup (C.US), Morgan Stanley (MS.US) rose nearly 5%, Goldman (GS.US), Bank of America (BAC.US), and Wells Fargo (WFC.US) rose over 4%.

As traders were watching the result of the White House election, former President Trump currently leads, although the results of several key states have not yet been announced. As the Republicans are expected to control the White House, bank stocks are expected to benefit. Jaret Seiberg, an analyst at TD Cowen, noted that the relaxation of CFPB regulation is particularly beneficial to financial companies.

Seiberg recently wrote in a report to clients: "Trump is a candidate you will ignore what he says and focus on what you expect him to do. That's why he promised to relax financial regulation, because his regulators may revoke most of CFPB's enforcement agenda and reconsider the safety and soundness changes for big banks."

Seiberg said that trading banks can particularly benefit from the possibility of lower capital requirements, the retention of credit card late fees, and help with cryptocurrency regulation. However, he warned that Trump's tariff and immigration plans could bring downside risks, which may lead to inflation.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.