New York, Jan 22, 2026, 13:34 EST — Regular session
- Wells Fargo shares climb alongside other major banks as U.S. stocks gain ground
- Traders digest new labor-market figures alongside tariff headlines
- Attention shifts to the Federal Reserve’s rate decision set for late January
Shares of Wells Fargo & Company jumped 2.6% to $88.38 on Thursday, riding a wave of gains across U.S. banks. JPMorgan edged up 1.1%, Bank of America rose 1.4%, and Citigroup added 1.9%, while the S&P 500 ETF SPY increased roughly 0.7%.
Financials rallied as Wall Street inched closer to record highs after President Donald Trump softened his tariff threats on Europe, easing the risk-off mood that had gripped markets earlier this week. “It’s the TACO trade follow on from yesterday,” said Dustin Thackeray, head of portfolio management at Crewe Advisors, referring to trader slang for “Trump Always Chickens Out.” Reuters
Economic data took center stage over geopolitical concerns. Initial unemployment claims ticked up slightly to 200,000 last week, while the third-quarter GDP growth was revised upward to a 4.4% annual rate, signaling solid demand despite sluggish hiring. “The United States is experiencing a jobless boom … but there is almost no hiring,” noted Heather Long, chief economist at Navy Federal Credit Union. Reuters
Wells Fargo is making waves with a major shift. The bank plans to relocate its wealth-management headquarters to West Palm Beach, Florida, after securing a 50,000-square-foot lease at Related Ross’ One Flagler building, wealth chief Barry Sommers confirmed. Around 100 staffers are set to move by year-end, with the new office expected to open in August. “I couldn’t be more excited about the position we’re in,” Sommers said. Related founder Stephen Ross described the move as a “big step.” Insurance Journal
A prospectus supplement filed with the SEC revealed that Wells Fargo issued $2.76 million in fixed-rate callable notes due 2036, carrying a 4.85% interest rate. Being callable, the bank has the option to redeem these notes before maturity, which could cap returns for investors if interest rates drop.
Interest rates still drive the biggest moves for equity traders. Banks tend to benefit when long-term yields stay strong and loan pricing remains steady, boosting the gap between their loan earnings and deposit costs.
Policy risk remains a cloud over the sector. Citigroup analysts warned that Trump’s focus on affordability might shift the spotlight to fintech rivals. The president has also proposed capping credit card interest rates at 10% for one year—a move that’s met resistance from banks.
Investors are keeping an eye on whether consumer credit holds up while lenders tweak underwriting and tariff-driven price pressures make their way through the system. Should growth slow, credit costs could spike sharply, wiping out gains from improved margins.
Economists surveyed by Reuters largely anticipate the Federal Reserve will hold rates steady in the 3.50%-3.75% band at its upcoming meeting. Notably, fewer now predict cuts in the near term compared to a month earlier.
The Fed’s Jan. 27-28 meeting and subsequent press conference are next on the calendar, with minutes due Feb. 18, per the central bank’s schedule. Traders will be watching closely for any hints of a rate path change that might reshape the outlook for bank stocks.
