New York, Feb 4, 2026, 15:21 EST — Regular session.
Wells Fargo & Co shares climbed on Wednesday, following a broader uptick in U.S. bank stocks driven by gains in longer-dated Treasury yields. By 3:15 p.m. ET, the stock had risen 1.2% to $93.44.
The KBW Nasdaq Bank Index climbed 1.23% today. This is significant for Wells Fargo since a steeper yield curve—the difference between short- and long-term rates—can boost the margin banks make on loans compared to what they pay on deposits. 1
The curve steepened after the U.S. Treasury signaled it won’t raise auction sizes for notes and bonds for several quarters, despite warnings from dealers about a possible funding gap down the line. Jefferies chief U.S. economist Thomas Simons noted, “Treasury is cognizant of the likelihood that strong demand for bills will be persistent,” and said the government can rely on front-end issuance for now. 2
Investors are betting on a more “normally positively sloped” yield curve under incoming Federal Reserve Chair Kevin Warsh, focusing on the impact of balance-sheet shrinkage at the long end. Eric Kuby, chief investment officer at North Star Investment Management Corp., said, “The main outcome of shrinking the balance sheet would be to have a yield curve that is more normally positively sloped.” 3
A prospectus supplement filed on the SEC website revealed Wells Fargo priced 5.50% fixed-rate callable notes maturing in 2046, with an issue date set for Feb. 5. The filing is standard, yet it comes as investors watch closely to gauge where long-term borrowing costs might settle amid ongoing rate volatility.
The schedule for key U.S. economic data changed following the government shutdown. The Labor Department announced the January employment report will come out on Feb. 11, and the January CPI report on Feb. 13. The December JOLTS report is now set for Feb. 5. 4
Wells Fargo’s latest quarterly update projects roughly $50 billion in net interest income for 2026 and reports $612 million in severance costs linked to layoffs. CEO Charlie Scharf told analysts, “The economy and our customers remain resilient,” but noted the bank is keeping a close eye on portfolios for any signs of trouble. 5
CFO Mike Santomassimo highlighted steady consumer activity as the bank entered 2026. “The cash flow, the spending levels, the credit performance has all been quite good so far,” he said, according to American Banker. 6
Other major banks mostly climbed: JPMorgan Chase added 1.0%, Bank of America jumped 1.9%, while Citigroup barely moved.
But a steeper curve isn’t a guaranteed win for banks. If long-term yields fall back or fresh data revives growth concerns, the curve could flatten quickly, squeezing lending margins. On top of that, weaker credit conditions would weigh further on profits.
Investors are now gearing up for Wells Fargo’s Feb. 10 slot at the UBS Financial Services Conference. Santomassimo is set to speak at 8:50 a.m. ET, with the company streaming the session live. 7
