NEW YORK, December 29, 2025, 21:14 ET — Market closed
Wells Fargo & Co shares fell 0.8% on Monday to close at $94.52, as U.S. bank stocks retreated in thin year-end trading. The stock traded between $94.37 and $95.61. StockAnalysis
The move matters because banks have been among the steadier performers this year, and investors often trim exposure into the final sessions of the calendar. The SPDR S&P Bank ETF slid 0.9%, and the Financial Select Sector SPDR ETF ended down about 0.5%.
Treasury yields set the starting point for lending rates, and they influence the return banks earn on cash. The 10-year yield dipped to about 4.11%, a reminder that net interest margin — the spread between what a bank earns on loans and pays on deposits — can tighten when longer-term rates fall. Nasdaq
Wall Street ended lower, with the S&P 500 down 0.35% and the Dow off 0.51%, as heavyweight tech shares pulled back from last week’s rally to record highs. Volume on U.S. exchanges was 13.08 billion shares, below the 20-day average of 16.2 billion, while attention turned to Fed meeting minutes and weekly jobless claims later this week. “It’ll turn out to be a buying opportunity,” said Hank Smith, director and head of investment strategy at Haverford Trust. Reuters
Among big banks, JPMorgan Chase fell 1.3%, Bank of America slid 1.5% and Citigroup dropped 1.9%, leaving Wells Fargo relatively steadier but still moving with the group.
For lenders, the shape of the yield curve matters as much as the level. A flatter curve — when long-term rates sit closer to short-term rates — can squeeze the spread banks earn on new loans.
Lower long-term yields can also support loan demand by easing borrowing costs, which can help fee and lending businesses. The trade-off is whether deposit costs fall quickly enough to protect margins.
Wells Fargo’s next clear catalyst is its fourth-quarter report. The bank’s investor calendar shows results are due on Jan. 14, before the market opens. Wellsfargo
Before Tuesday’s session, traders will be watching whether WFC holds the $94 area after Monday’s dip. Monday’s $94.37 low is a near-term support level, while $95.61 marks resistance from the day’s high. Investing
Macro headlines may do most of the work in the near term. Fed minutes and jobless claims are the main scheduled events in an otherwise quiet holiday week, and both can shift rate-cut expectations.
Year-end positioning can exaggerate moves, especially in financials that have rallied strongly over 2025. Liquidity usually returns in early January, when sector rotations can reverse quickly.
For Wells Fargo, investors will be looking for stabilization into the final two trading days of 2025 and for confirmation that the broader bank pullback has run its course. Treasury yields and the big-bank complex will likely set the tone at Tuesday’s open.
