Major U.S. banks such as Goldman Sachs (GS, Financial), JPMorgan Chase (JPM), and Morgan Stanley (MS) experienced significant stock gains, driven by expectations of relaxed financial regulations. Goldman Sachs and Wells Fargo (WFC) both surged by 13.1%, while JPMorgan Chase and Morgan Stanley rose by 11.5% and 11.6%, respectively.
The KBW Bank Index (BKX) climbed 10.7%, reaching its highest point since February 2022. Similarly, the KBW Nasdaq Regional Banking Index (KRX) and SPDR S&P Regional Banking ETF (KRE) increased by over 13%, hitting new highs for 2022.
Investor confidence in banking stocks reflects optimism that regulatory and tax policies under Donald Trump will favor the financial sector. Trump has promised to reduce corporate taxes and streamline financial regulations, contributing to the current stock surge.
Meanwhile, renewable energy stocks fell sharply. Notably, Sunrun saw a 29.6% decline, and Array dropped 21.9%. Under Trump’s potential presidency, there might be a reversal of Biden’s policies on electric vehicles and renewable energy, which is currently affecting investor sentiment.
Bitcoin reached a new record high, breaking the $76,000 mark, as enthusiasm over cryptocurrencies surged. Coinbase, the largest cryptocurrency exchange in the U.S., saw its stock rise by 31.1%. Other cryptocurrency-focused stocks, like MicroStrategy (MSTR) and Riot Platforms, also experienced notable gains.
