Wells Fargo Shares Rally Most Since Trump Won the Election

Core Insights - Wells Fargo & Co. shares experienced a significant increase of 7.1%, marking its largest daily gain since November 6, 2022, following the bank's update on mid-term profitability targets after the lifting of an asset cap by regulators [1][4] - The bank's return on tangible common equity (ROTCE) target was raised to 17% to 18% from the previous 15%, indicating a focus on improving efficiency in generating earnings for shareholders [3] - Wells Fargo's total assets surpassed $2 trillion for the first time at the end of September, following the removal of a regulatory penalty that had previously limited its growth [4] Financial Performance - The bank's stock performance made it the best performer in the KBW Bank Index for the day, with a notable increase compared to its peers [1] - Wells Fargo repurchased $6.1 billion of common stock in the third quarter and plans to maintain a similar buyback amount in the last quarter of the year [5] Market Context - The recent surge in Wells Fargo's stock is attributed to broader market expectations regarding financial stocks, particularly in light of regulatory changes and economic policies [1][2]