NEW YORK, Jan 26, 2026, 14:32 (EST) — Regular session
- Wells Fargo shares climbed roughly 1.3% in afternoon trading, outpacing JPMorgan and Bank of America
- Starting Feb. 9, the bank will bring on Faraz Shafiq, an ex-executive from Amazon Web Services, to head up its AI product division
- Traders are focused on Wednesday’s Fed rate decision, looking for clues on where bank margins might head next
Shares of Wells Fargo & Co climbed roughly 1.3% Monday afternoon, gaining $1.13 to reach $88.09 following a low of $86.85 earlier in the session.
The shift arrives as the Federal Reserve prepares to unveil its policy decision this week, alongside earnings reports from major U.S. firms. Both events have the power to influence rate forecasts and the overall risk sentiment that bank stocks are sensitive to. (Reuters)
Wells Fargo outpaced several major rivals during the session. JPMorgan Chase climbed roughly 0.8%, with Bank of America posting a similar gain. Citigroup led the group, adding about 1.3%. The SPDR S&P Bank ETF inched up around 0.3%.
Wells Fargo released a leadership update that investors are closely examining for clues on spending priorities. The bank announced it hired Faraz Shafiq as head of AI products and solutions, starting Feb. 9. Shafiq will report to Saul Van Beurden, who leads AI efforts and serves as co-CEO of the consumer banking and lending unit. (Wells Fargo Newsroom)
Van Beurden highlighted Shafiq’s background in “generative and agentic AI” as a boost to accelerating the bank’s strategy. (Generative AI creates text or other content; “agentic” AI refers to tools designed to act autonomously to complete tasks.) Shafiq noted that financial services is one of the industries most impacted by AI, calling his move an opportunity to develop products grounded in “responsible AI practices.” (Business Wire)
Wells Fargo has teamed up with Lockheed Martin, PG&E, and Salesforce in a new effort to tackle wildfire prevention and response. The initiative, called Emberpoint, plans to deploy artificial intelligence, autonomous systems, and integrated command-and-control tools. Wells Fargo is backing the project with a capital investment. (PR Newswire)
Headlines like that might offer a slight boost, but bank stocks usually move based on rates, credit conditions, and regulation — the factors that impact earnings most directly.
Policy noise in Washington poses a risk to the group. President Donald Trump’s escalating battle with major banks has brought proposals like a 10% cap on credit card interest rates back into the spotlight. Analysts and executives caution that such measures could restrict access to unsecured credit and tighten margins on card lending. (Reuters)
Wells Fargo’s most recent quarterly report also rattled investors with its margin outlook. Earlier this month, the bank projected $50 billion in interest income for 2026, falling short of analysts’ consensus estimates. The results missed profit targets and factored in $612 million in severance expenses related to workforce reductions. (Reuters)
The Fed’s next meeting wraps up Wednesday, Jan. 27–28, with the policy statement scheduled for 2:00 p.m. ET and a press conference at 2:30 p.m. Traders are focused on any signal of a rate path shift that could alter expectations for bank net interest income—the gap between earnings on loans and costs on deposits. (Federal Reserve)
