- Citigroup, Bank of America and Wells Fargo advanced in overnight trading on brokerage Robinhood.
- The move comes as investors bet on Donald Trump's victory in the presidential election.
Shares of major banks climbed in overnight trading as investors expected Donald Trump's victory in the presidential election.
Citigroup jumped about 5% in special late trading on the Robinhood brokerage for well-known stocks. Bank of America added more than 3%, while Wells Fargo and Goldman Sachs each popped more than 2%.
These moves come as traders followed results trickling out on the race for the White House. Former President Donald Trump gained a solid lead over Vice President Kamala Harris, per NBC News' projection, narrowing her path to victory.
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Bank stocks are expected to benefit under GOP control given the party's posture toward deregulation. TD Cowen analyst Jaret Seiberg noted a pullback on Consumer Financial Protection Bureau oversight can particularly benefit finance names.
"Donald Trump is the candidate 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 offers the promise of deregulation for financials as his regulators are likely to roll back much of the CFPB enforcement agenda and rethink safety and soundness changes for big banks."
Seiberg said trading banks can specifically gain given the likelihood of lower capital requirements, credit card late fee policies remaining and help on crypto regulations. But he warned that there's downside risk tied to Trump's plans for tariffs and deportations, which can said could be inflationary.
