Why Wells Fargo Stock Zoomed Higher on a Sleepy Wednesday
Wednesday's action on the stock market was fairly sedate, with stock market indexes like the S&P 500 index essentially moving sideways. That wasn't the case with big American bank Wells Fargo (NYSE: WFC), as its shares bounced more than 3% higher. A piece of news about regulations was one reason for this, while an analyst's price target raise also assisted in the lift. Late on Tuesday, Bloomberg reported that federal bank regulators are aiming to reduce a capital requirement for banks called the enhanced supplementary leverage ratio (eSLR). Large lenders like Wells Fargo are required to essentially hold a certain amount of capital to insulate themselves from economic shocks. Image source: Getty Images.Continue reading
Wednesday's action on the stock market was fairly sedate, with stock market indexes like the S&P 500 index essentially moving sideways. That wasn't the case with big American bank Wells Fargo (NYSE: WFC), as its shares bounced more than 3% higher. A piece of news about regulations was one reason for this, while an analyst's price target raise also assisted in the lift.
Late on Tuesday, Bloomberg reported that federal bank regulators are aiming to reduce a capital requirement for banks called the enhanced supplementary leverage ratio (eSLR). Large lenders like Wells Fargo are required to essentially hold a certain amount of capital to insulate themselves from economic shocks.
Image source: Getty Images.
