What's Going On With Bank Of America (BAC) And Wells Fargo (WFC) Shares

Bank of America Corp BAC and Wells Fargo & Co WFC shares are trading higher going into the close of Wednesday's session. Shares of several companies in the broader financial sector are trading higher amid overall market strength after the Fed left rates unchanged, with most Fed officials seeing rate cuts in 2024-2026.

Lower interest rates tend to encourage borrowing and spending. If the Federal Reserve signals future rate cuts, it might signal to investors and consumers that borrowing costs will remain low or decrease in the future.

This could stimulate demand for loans, mortgages and other financial products offered by banks, potentially benefiting their revenue streams.

What Happened With The Fed?

The Federal Reserve decided to keep the federal funds rate steady between 5.25% and 5.5%, marking a break from earlier increases since March 2022. Although they acknowledged a recent dip in inflation, the Fed aims to continue lowering it to hit the 2% goal.

They highlighted their dependence on upcoming data to guide their future policy choices...Read More

See Also: Will Recession Accompany Bull Market In 2024?

According to data from Benzinga Pro, BAC is trading higher by 3.8% to $31.91. WFC is trading higher by 2.4% to $47.58.