What's Going On With Wells Fargo (WFC) Shares

Wells Fargo & Co WFC shares are trading lower by 1.6% to $41.64 Friday morning. Shares of several banking and financial stocks are trading lower this week amid overall market weakness with concerns about future rate hikes following Wednesday's FOMC statement and lower-than-expected initial jobless claims data.

Higher interest rates can lead to higher funding costs for banks, while the returns on existing loans and investments may not rise as quickly. This can squeeze their net interest income, a key driver of their earnings.

Lower net interest income can result in reduced profitability and, in turn, a lower stock price.

What's Going On?

The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More

According to data from Benzinga Pro, Wells Fargo has a 52-week high of $48.84 and a 52-week low of $35.25.