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
Meanwhile, the S&P 500-tracking SPDR S&P 500 ETF Trust
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
Trump's victory promises a more favorable regulatory landscape for banks, fueling investor optimism.
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.
The big banks also joined in on the rally, spurred by Trump's potential to push for relaxed financial regulations:
- Wells Fargo & Co
(WFC ) : The bank gained 13.1%, reflecting optimism about its prospects under a less regulated environment. - Goldman Sachs Group Inc
(GS ) : With a 10.29% increase, Goldman benefited from the market rally and hopes of tax cuts and looser regulations. - Morgan Stanley
(MS ) : Rising 9.92%, Morgan Stanley's strong performance mirrored the broader rally in financials.