Trump Victory Sends Bank Stocks Higher, Leading S&P 500 On Regulatory Hopes

Author: Surbhi Jain | November 06, 2024 12:29pm

After Donald Trump's decisive win in the 2024 U.S. presidential election, Wall Street reacted strongly, particularly in the financial sector. The Financial Select Sector SPDR Fund (NYSE:XLF) rose 4.84%, while the Vanguard Financials Index Fund ETF (NYSE:VFH) gained 5.33% in early Wednesday trading.

Meanwhile, the S&P 500-tracking SPDR S&P 500 ETF Trust (NYSE:SPY), the iShares Core S&P 500 ETF (NYSE:IVV), and the Vanguard S&P 500 ETF (NYSE:VOO) were up about 2%.

A Big Win for Banks on Election Day

As of 10 a.m. ET on Wednesday, seven of the top 10 performing S&P 500 stocks were in the financial sector, with Discover Financial Services (NYSE:DFS), Capital One Financial Corp (NYSE:COF), and Synchrony Financial (NYSE:SYF) leading the charge.

Trump's victory promises a more favorable regulatory landscape for banks, fueling investor optimism.

Read Also: Tesla, GM, Norwegian Cruise Push Consumer Discretionary Ahead Of S&P 500 On Election Day

Top Financial Performers: A Look At The Leaders

• Discover Financial Services: Soaring 23.5%, Discover led the pack with a stellar performance, reflecting confidence in its growth under a friendlier regulatory environment.
• Capital One Financial: Not far behind, Capital One saw a 16.85% jump, as investors anticipate an environment ripe for growth and profitability.
• Synchrony Financial: Synchrony surged 15.82%, signaling strong investor confidence in the credit services sector, thanks to expected regulatory relief.

Major Banks Join The Rally

The big banks also joined in on the rally, spurred by Trump's potential to push for relaxed financial regulations:

• Wells Fargo & Co (NYSE:WFC): The bank gained 13.1%, reflecting optimism about its prospects under a less regulated environment.
• Goldman Sachs Group Inc (NYSE:GS): With a 10.29% increase, Goldman benefited from the market rally and hopes of tax cuts and looser regulations.
• Morgan Stanley (NYSE:MS): Rising 9.92%, Morgan Stanley's strong performance mirrored the broader rally in financials.

Overall, Trump's win has amplified investor optimism across the financial sector, with expectations for growth driven by regulatory easing and potential tax cuts.

Read Next:

• Trump’s Historic Return: 7 Ways His Second Term Could Impact The US Economy

Photo: Anna Moneymaker/Shutterstock.com

Posted In: COF DFS GS IVV MS SPY SYF VFH VOO WFC XLF