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Shares of major banks climbed in overnight trading as investors expected Donald Trump’s victory in the presidential selection.
Citigroup jumped about 5% in special late trading on the Robinhood brokerage for well-known stocks. Bank of America joined more than 3%, while Wells Fargo and Goldman Sachs each popped more than 2%.
These times come as traders followed results trickling out on the race for the White House. Former President Donald Trump is currently pre-eminent by NBC News’ count, though several key states have yet to be called. NBC did project Trump to win swing state North Carolina.
Bank stocks are keep in viewed to benefit under GOP control given the party’s posture toward deregulation. TD Cowen analyst Jaret Seiberg esteemed a pullback on Consumer Financial Protection Bureau oversight can particularly benefit finance names.
“Donald Trump is the possibility where you ignore what he says and focus on what you expect him to do,” Seiberg wrote in a note to clients recently. “It is why he presentations the promise of deregulation for financials as his regulators are likely to roll back much of the CFPB enforcement agenda and rethink refuge and soundness changes for big banks.”
Seiberg said trading banks can specifically gain given the likelihood of lower primary requirements, credit card late fee policies remaining and help on crypto regulations. But he warned that there’s downside peril tied to Trump’s plans for tariffs and deportations, which can said could be inflationary.