SPDR S&P Regional Banking ETF (ARCA: KRE)

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In seeking to track the performance of the S&P Regional Banks Select Industry Index (the index), the fund employs a sampling strategy. It generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index. The index represents the regional banks segment of the S&P Total Market Index (S&P TMI).

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Goldman Sachs destaca ETF con grandes movimientos en días de la Reunión de la Fed. Sectores más impactados y estrategias clave para operar.

Goldman Sachs identifica 20 ETF con movimientos destacados en días de la Reunión de la Fed

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Wall Street is in full risk-on mode, as traders eagerly snap up technology stocks, particularly semiconductors, ahead of Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) CEO Jensen Huang&#8216;s speech later on Monday at the Consumer Electronics Show <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/42822846/nvidia-5000-series-product-updates-make-it-top-semiconductor-pick-ahead-of-jensen-huangs-ces-keynote-analyst">in Las Vegas.</a>
Tech-linked indices and sector outperformed by midday trading in New York. The Nasdaq 100 notched a 1.3% increase while the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) soared by over 4%, eyeing the strongest session since mid-September.
Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares led gains, flagging a 12% surge, on the back of expectations for strong AI demand. Nvidia rose 4.8%.
Among Monday&#8217;s notable headlines, The Washington Post reported Donald Trump&#8217;s economic team is exploring a more targeted version of its universal tariff plan, aiming to apply tariffs to specific sectors rather than implementing a broad <a href="https://www.benzinga.com/25/01/42813324/trumps-universal-tariff-plans-take-shape-analysts-expect-stronger-for-longer-greenback">measure on all imports. </a>The dollar softened by 0.5% in reaction to the news.
The Federal Reserve announced the vice chair for supervision Michael Barr, a strong advocate for tighter banking regulations, will step down from his role in February but will retain his seat on the Board of Governors.
&#8220;The risk of a dispute over the position could be a distraction from our mission,&#8221; Barr stated, alluding to potential clashes with the incoming administration&#8217;s inclination toward looser banking regulations. Regional bank stocks reacted positively, with the S&amp;P SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) rising 1.6% on Monday.
In commodities markets, natural gas prices rocketed by another 7% on the heels of an extension of cold temperatures, while oil prices slipped 0.7%, potentially snapping a 5-day winning streak. 
Sentiment turned bullish again in cryptocurrency markets, as Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) ferociously reclaimed the $100,000 mark, sending crypto-linked stocks such as Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>) and Microstrategy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSTR#NASDAQ">MSTR</a>) all higher by about 6%. 
<h1 class="wp-block-heading">Monday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,584.34</td>
<td>1.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,996.40</td>
<td>0.9%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,284.16</td>
<td>0.7%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,832.88</td>
<td>0.2%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:15 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent010625&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.9% to $597.33.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.4% to $429.05.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 1.3% to $525.31.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 0.9% to $226.44.</li>
<li>The&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1.7%; the&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) lagged, down 0.7%.</li>
</ul>
<h1 class="wp-block-heading">Monday&#8217;s Stock Movers</h1>
<ul>
<li>Shares of Paycor HCM Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYCR#NASDAQ">PYCR</a>) surged 23% after reports surfaced that the company is nearing a potential acquisition by Paychex Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PAYX#NASDAQ">PAYX</a>). </li>
<li>Palantir Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NASDAQ">PLTR</a>) tumbled over 4% following a cautious note from Morgan Stanley. </li>
<li>Fubotv Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FUBO#NYSE">FUBO</a>) skyrocketed by 220% after Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) announced to combine its Hulu + Live TV business with Fubo.</li>
</ul>
Read Next: 
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<li><a href="https://www.benzinga.com/government/regulations/25/01/42822625/big-techs-date-with-antitrust-alphabet-meta-amazon-brace-for-legal-showdowns-in-2025">Big Tech&#8217;s Date With Antitrust: Alphabet, Meta, Amazon Brace For Legal Showdowns In 2025</a></li>
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Wall Street Rallies, Chipmakers Soar Ahead Of Nvidia's Huang Speech, Bitcoin Reclaims $100,000: What's Driving Markets Monday?

Billionaire investor and former hedge fund manager Stanley Druckenmiller, a confidant of George Soros, is well known for his <a href="https://www.benzinga.com/24/12/42659876/stanley-druckenmiller-pours-funds-into-1-trillion-company-already-trading-up-100">top-down investment style</a> and for paying close attention to macroeconomic factors. 
One of his recent wagers seemingly predicted the <a href="https://www.benzinga.com/topic/2024-election">2024 U.S. presidential election</a> ahead of time.
What Happened: According to a 13f filing on Sept. 30, Druckenmiller&#8217;s Duquesne Family Holdings purchased 2,053,323 shares of the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) during the quarter. This now carries a market value of around $123 million. The investment represented 3.9% of Duquesne&#8217;s total portfolio.
The ETF tracks regional bank stocks across the U.S. Unlike large banks, regionals have smaller asset bases, are subject to less regulation and operate in only one region or state.
Regional banks could be poised for <a href="https://www.benzinga.com/24/11/42249615/6-regional-bank-stocks-to-buy-before-trump-names-new-sec-leadership">strong legislative tailwinds</a> following President-elect Donald Trump&#8216;s inauguration in January. Trump&#8217;s first term brought deregulation of regional banks and several rollbacks of Obama-era banking policy following the 2008 banking crisis. On the flip side, deregulation poses a risk to the financial sector if lax standards lead to crises.
The ETF is trading 6% higher than it did on Sept. 30. On the Wednesday following election day, the ETF traded up over 13% in a single trading period, reflecting market optimism over the industry&#8217;s prospects under a second Trump administration.
Why It Matters: Druckenmiller&#8217;s investment before the election could be seen as a prescient bet that Trump would win. In October, Druckenmiller said that the market <a href="https://www.benzinga.com/news/24/10/41448443/market-very-convinced-of-a-trump-win-says-stanley-druckenmiller-why-billionaire-investor-thinks-blue">was &#8220;very convinced&#8221;</a> of a Trump victory. 
It is unclear whether the Bowdoin College and University of Michigan alumnus bought more shares of the ETF between the third-quarter reporting date and the election.
Price-to-book metrics are generally considered more relevant to analyzing bank market valuations. On Monday, the Regional Bank ETF traded 1.1 times its book value. 
Wall Street&#8217;s valuation of regionals has largely rebounded since 2023&#8217;s banking crisis, which saw Silicon Valley Bank and First Republic Bank go under. The ETF traded 0.7 times above the book value in April of 2023. During Trump&#8217;s first term, the ETF traded as high as 1.6 times above book value, reflecting market confidence.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/general/health-care/24/12/42627207/stanley-druckenmillers-top-holding-has-outperformed-its-sector-by-252">Stanley Druckenmiller&#8217;s Top Holding Has Outperformed Its Sector By 252%</a></li>
</ul>
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Stanley Druckenmiller Loaded Up On Regional Banks Ahead Of Trump's Election Win

The biggest banks are planning to sue the Federal Reserve over the annual bank stress tests, according to a person familiar with the matter. A lawsuit is expected this week and could come as soon as Tuesday morning, the person said.
The Fed's stress test is an <a href="https://www.cnbc.com/2024/06/26/fed-banks-stress-test-2024.html">annual ritual</a> that forces banks to maintain adequate cushions for bad loans and dictates the size of share repurchases and dividends.
After the market close on Monday, the Federal Reserve announced in a statement that it is <a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20241223a.htm">looking to make changes</a> to the bank stress tests and will be seeking public comment on what it calls "significant changes to improve the transparency of its bank stress tests and to reduce the volatility of resulting capital buffer requirements."
The Fed said it made the determination to change the tests because of "the evolving legal landscape," pointing to changes in administrative laws in recent years. It didn't outline any specific changes to the framework of the annual stress tests.
<a href="https://www.cnbc.com/2024/12/24/biggest-banks-planning-to-sue-the-federal-reserve-over-annual-stress-tests.html" title="https://www.cnbc.com/2024/12/24/biggest-banks-planning-to-sue-the-federal-reserve-over-annual-stress-tests.html">https://www.cnbc.com/2024/12/24/biggest-banks-planning-to-sue-the-federal-reserve-over-annual-stress-tests.html</a>

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'Biggest banks planning to sue the Federal Reserve over annual stress tests' - CNBC

<a href="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20241223a.htm" title="https://www.federalreserve.gov/newsevents/pressreleases/bcreg20241223a.htm">https://www.federalreserve.gov/newsevents/pressreleases/bcreg20241223a.htm</a>
&nbsp;

US Federal Reserve Announces Due To 'Evolving Legal Landscape,' It Will Soon Seek Comment On Changes To Bank Stress Tests To Improve Transparency And Reduce Volatility; Says Intends To Propose Changes Including Disclosing And Seeking Comment On Stress Test Models And Scenarios, And Averaging Results Over Two Years; Proposed Changes Not Designed To Materially Affect Overall Bank Capital Requirements

Markets saw a brief reprieve Friday as the Federal Reserve&#8217;s preferred inflation gauge came in below expectations, tempering concerns of mounting volatility after this <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42615908/feds-preferred-inflation-gauge-falls-more-than-expected-markets-breathe-sigh-of-relief">week's hawkish policy pivot.</a>
The Personal Consumption Expenditures price index rose 2.4% year-over-year in November, missing the 2.5% forecast. On a monthly basis, the gauge slowed to 0.1%, down from 0.2% in October and below projections for steady growth.
Core PCE, which excludes food and energy, remained at 2.8% annually, slightly under the 2.9% estimate. The monthly core reading also decelerated to 0.1% from 0.3%, undershooting the 0.2% forecast.
Even with Friday's softer inflation print, traders seemed hesitant to enter a buy-everything mode after the sharp volatility seen earlier this week. 
The slightly tempered reaction suggests a degree of caution remains entrenched among investors as they assess the Fed's hawkish tone.
New York Fed President John Williams, interviewed by CNBC, reiterated that &#8220;monetary policy continues to be restrictive.&#8221; 
Williams described the recent inflation data as &#8220;encouraging news,&#8221; highlighting further disinflation progress. Yet, he indicated that &#8220;we&#8217;re still not to our 2% goal&#8221; and reaffirmed the Fed's commitment to achieving that target.
&#8220;I think the economy is a good place and most importantly for me, monetary policy is well positioned,&#8221; he added. 
<h1 class="wp-block-heading">Stock Market Adds Some Gains, Yet &#8220;Don&#8217;t Fight The Fed&#8221; Remains The Mantra</h1>
U.S. equity markets saw modest gains following November&#8217;s softer-than-expected inflation data, as investor caution lingered after the Federal Reserve's hawkish policy shift earlier this week.
<ul>
<li>S&amp;P 500: The broader market index — as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) — edged up from 5,800 to 5,840 by 9:50 a.m. in New York, down by 0.4% for the day.</li>
<li>Dow Jones: The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) gained 0.4% after the release.</li>
<li>Nasdaq 100: Tech stocks fared better, with the Nasdaq QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) adding 0.6% and recovering from steeper pre-market declines.</li>
<li>Real estate was the strongest-performing sector, with the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>) rising by 1.1%. </li>
<li>Russell 2000: Small-cap stocks showed the largest rebound, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) up by 0.1%. </li>
<li>The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) witnessed a 0.8% rally. </li>
</ul>
<h1 class="wp-block-heading">Treasury Yields Ease, Dollar Falls And Gold Rebounds</h1>
Bond markets saw some relief as Treasury yields fell following several days of sharp increases. 
The yield on the 30-year Treasury bond dropped five basis points to 4.70%, lifting the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) by 0.8%. This marks a partial recovery after the ETF plunged more than 3% over the previous two sessions.
Yields on shorter-dated two-year Treasury notes fell by seven basis points.
The U.S. dollar index — as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) — weakened by 0.3%.
Gold prices rose, as the precious metal benefited from lower Treasury yields and the declining dollar. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) increased by 0.7%.
In the cryptocurrency market, the iShares Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NYSE">IBIT</a>) trimmed premarket losses to 0.9%, as the largest cryptocurrency surged back above $95,000 levels. 
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42606037/etf-market-hits-records-in-2024-inflows-reach-16-trillion-7-funds-top-ranking">ETF Market Sets Records In 2024 As Inflows Reach $1.6 Trillion: 7 Funds Leading Charge</a></li>
</ul>
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Market Volatility Halts On Soft Inflation Data, Yet Traders Remain Wary Of Fighting The Fed: 10 ETFs Moving Friday

As markets brace for the Federal Reserve's final policy meeting of the year, scheduled at 2:00 p.m. Wednesday, Goldman Sachs highlighted 20 exchange-traded funds (ETFs) that have historically shown outsized <a href="https://www.benzinga.com/topic/federal-reserve">moves around Fed decision days</a>.
While a 25-basis-point rate cut to a target range of 4.25%-4.50% is widely anticipated, the market's focus is on the Fed's forward guidance, particularly the Summary of Economic Projections (SEP) and the updated &#8220;dot plot.&#8221;
Following December's expected cut, Goldman Sachs projects a more measured pace of easing next year, forecasting rate cuts in March, June, and September, with the terminal rate seen at 3.50%-3.75%.
Read Also: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42554114/all-eyes-on-december-fed-meeting-as-traders-await-interest-rate-projections">All Eyes On December Fed Meeting As Traders Await Interest Rate Projections</a>
<h3 class="wp-block-heading">Market Dynamics Around Fed Days</h3>
U.S. equity markets have displayed strong short-term gains during Fed meeting weeks in 2024. 
Investors employing a simple strategy of buying the S&amp;P 500 index at market close before a Federal Open Market Committee (FOMC) announcement and selling at close the following day have captured median returns of 1.1% across the past seven meetings.
Yet those extending the trade horizon to 15 sessions post-Fed meeting have enjoyed significantly larger average gains of 3.29%, more than double the short-term returns. Notably, every Fed meeting this year has resulted in positive 15-day returns.
"We observe that U.S. banking ETFs, such as SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) and SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>), have seen unusually large moves on FOMC days since 2022" Goldman analysts wrote in a recent note.
For bond-focused investors, the report highlights consistent post-meeting gains in high-yield and investment-grade ETFs like iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HYG#NYSE">HYG</a>) and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LQD#NYSE">LQD</a>).
Meanwhile, energy-focused ETFs, such as the United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), have seen negative reactions. 
<h3 class="wp-block-heading">ETFs Showing Heightened Fed-Day Moves</h3>
Here's Goldman Sachs' list of 20 ETFs with the largest absolute moves – which include both positive and negative swing – on FOMC days:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Focus</th>
<th>Average Absolute Move on FOMC since 2022</th>
<th>Average Absolute Move (Last 3 FOMC events)</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR S&amp;P Regional Banking ETF </td>
<td>Regional Banking</td>
<td>2.5%</td>
<td>1.5%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>)</td>
<td>Semiconductor</td>
<td>2.4%</td>
<td>3.7%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>)</td>
<td>Semiconductor</td>
<td>2.4%</td>
<td>3.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>)</td>
<td>US Large Banks</td>
<td>2.2%</td>
<td>1.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P Biotech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XBI#NYSE">XBI</a>)</td>
<td>Biotech</td>
<td>2.0%</td>
<td>0.3%</td>
</tr>
<tr>
<td>United States Oil Fund </td>
<td>Oil</td>
<td>1.9%</td>
<td>2.0%</td>
</tr>
<tr>
<td>Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>Technology</td>
<td>1.9%</td>
<td>2.3%</td>
</tr>
<tr>
<td>iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>)</td>
<td>Silver</td>
<td>1.7%</td>
<td>2.4%</td>
</tr>
<tr>
<td>Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>Nasdaq 100</td>
<td>1.7%</td>
<td>1.7%</td>
</tr>
<tr>
<td>Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>)</td>
<td>Discretionary</td>
<td>1.6%</td>
<td>1.0%</td>
</tr>
<tr>
<td>iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>)</td>
<td>Russell 2000</td>
<td>1.5%</td>
<td>0.3%</td>
</tr>
<tr>
<td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td>
<td>S&amp;P 500</td>
<td>1.2%</td>
<td>0.9%</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>S&amp;P 500</td>
<td>1.2%</td>
<td>0.9%</td>
</tr>
<tr>
<td>Financial Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>)</td>
<td>Financial</td>
<td>1.1%</td>
<td>0.7%</td>
</tr>
<tr>
<td>SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>)</td>
<td>Gold</td>
<td>0.9%</td>
<td>1.4%</td>
</tr>
<tr>
<td>iShares J.P. Morgan USD Emerging Markets Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EMB#NASDAQ">EMB</a>)</td>
<td>EM Bond</td>
<td>0.8%</td>
<td>0.6%</td>
</tr>
<tr>
<td>iShares iBoxx $ High Yield Corporate Bond ETF </td>
<td>HY Corp Bond</td>
<td>0.6%</td>
<td>0.3%</td>
</tr>
<tr>
<td>iShares iBoxx $ Investment Grade Corporate Bond ETF </td>
<td>IG Corp Bond</td>
<td>0.6%</td>
<td>0.7%</td>
</tr>
<tr>
<td>iShares 7-10 Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IEF#NASDAQ">IEF</a>)</td>
<td>7-10 Year Treasury</td>
<td>0.6%</td>
<td>0.7%</td>
</tr>
<tr>
<td>iShares TIPS Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TIP#NYSE">TIP</a>)</td>
<td>TIPS Bond</td>
<td>0.5%</td>
<td>0.4%</td>
</tr>
<tr>
<td>Average</td>
<td></td>
<td>1.5%</td>
<td>1.3%</td>
</tr>
</tbody>
</table>
</figure>
Check Out: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42539116/fed-meetings-made-stock-traders-richer-in-2024-could-wednesday-bring-last-big-rally">Fed Meetings Made Stock Traders Richer In 2024: Could Wednesday Bring Last Big Rally?</a></li>
</ul>
Image: Shutterstock

20 ETFs Primed For Unusually Big Swings On Fed Meeting Days

Regional bank stocks have been on a tear since the 2024 U.S. election, with the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) climbing about 10% versus the broader <a href="https://www.benzinga.com/24/12/42536512/market-breadth-worsens-as-tech-giants-break-free-from-sp-500-reality-is-this-bullish-or-bearish-for-2025">S&amp;P 500&#8217;s 5% gain. </a>
Despite this already strong outperformance, JPMorgan analysts, led by Anthony Elian, CFA, see more upside.
The key drivers? A potential Trump administration's pro-business stance, easing regulation and a favorable interest rate backdrop.
In a note shared with clients on Tuesday, Elian indicated that investors — long on the sidelines due to frustrations such as regulation, rising deposit costs and the Spring 2023 banking turmoil — are beginning to show renewed interest in the sector.
&#8220;Our optimism for the group is not only driven by the likelihood of improving fundamentals next year in areas such as loan growth, deposit growth, and NIM expansion, but also tied to the fact that dozens of generalists and long only investors that we have spoken to since the election are showing increasing interest in the group but have not yet pulled the buy trigger en masse,&#8221; Elian said.
In essence, analysts at the U.S. largest investment bank are bullish on regional banks heading into 2025, with a strong case for 20% upside. 
Here's where they'd put $1,000 to work.
<h1 class="wp-block-heading">Why 2025 Could Be A Breakout Year For Regionals</h1>
According to JPMorgan, key catalysts driving stock gains across the industry next year include:
<ul>
<li>A revival in loan growth spurred by onshoring trends.</li>
<li>A deregulatory push from the upcoming Donald Trump&#8216;s administration, particularly if Basel III Endgame proposals are halted.</li>
<li>Improved M&amp;A activity, with banks like Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>), First Horizon Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FHN#NYSE">FHN</a>), and Zions Bancorporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZION#NASDAQ">ZION</a>) potentially benefiting.</li>
<li>Lower corporate taxes supporting bottom-line profitability.</li>
<li>A steep yield curve and the Fed's expected rate cuts in 2025, which could reduce deposit costs and boost Net Interest Margins (NIM).</li>
</ul>
<h1 class="wp-block-heading">Rate Cuts, Deposit Costs: A Big Win For Banks</h1>
JPMorgan highlights that deposit costs, which are tied to the Fed funds rate, remain critical to bank profitability.
As of the third quarter of 2024, the median cost of interest-bearing deposits stood at 3.5%, with higher-paying banks like Texas Capital Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCBI#NASDAQ">TCBI</a>), Flagstar Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLG#NYSE">FLG</a>) and Valley National Bancorp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VLY#NASDAQ">VLY</a>) above 4%.
Banks paying higher rates have the most room to benefit as the Fed eases monetary policy in 2025. 
Lower-beta deposits, like those at First Hawaiian Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FHB#NASDAQ">FHB</a>) and Webster Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBS#NYSE">WBS</a>), offer less flexibility for adjustments. 
<h1 class="wp-block-heading">JPMorgan's $1,000 Allocation Strategy</h1>
For retail investors looking to capitalize on regional bank momentum, JPMorgan provides a clear allocation breakdown:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Stock</th>
<th>Allocation ($)</th>
<th>Rating</th>
</tr>
</thead>
<tbody>
<tr>
<td>Western Alliance Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>)</td>
<td>$110</td>
<td>Overweight</td>
</tr>
<tr>
<td>First Citizens BancShares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>)</td>
<td>$105</td>
<td>Overweight</td>
</tr>
<tr>
<td>Pinnacle Financial Partners (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PNFP#NASDAQ">PNFP</a>)</td>
<td>$102</td>
<td>Overweight</td>
</tr>
<tr>
<td>Synovus Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>)</td>
<td>$94</td>
<td>Overweight</td>
</tr>
<tr>
<td>Webster Financial Corp. </td>
<td>$92</td>
<td>Overweight</td>
</tr>
<tr>
<td>Valley National Bancorp </td>
<td>$90</td>
<td>Overweight</td>
</tr>
<tr>
<td>Zions Bancorp. </td>
<td>$80</td>
<td>Neutral</td>
</tr>
<tr>
<td>First Horizon Corp. </td>
<td>$78</td>
<td>Neutral</td>
</tr>
<tr>
<td>Comerica Inc. </td>
<td>$65</td>
<td>Neutral</td>
</tr>
<tr>
<td>Flagstar Financial </td>
<td>$62</td>
<td>Neutral</td>
</tr>
<tr>
<td>Columbia Banking System (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COLB#NASDAQ">COLB</a>)</td>
<td>$40</td>
<td>Neutral</td>
</tr>
<tr>
<td>First Hawaiian Inc. </td>
<td>$30</td>
<td>Underweight</td>
</tr>
<tr>
<td>Texas Capital Bancshares </td>
<td>$30</td>
<td>Underweight</td>
</tr>
</tbody>
</table>
</figure>
<h1 class="wp-block-heading">Top Picks For 2025</h1>
JPMorgan highlights Western Alliance Corp, First Citizens BancShares and Pinnacle Financial Partners Inc. its top picks for regional banks in 2025, citing their relative strength in loan growth, cost efficiency and positioning for upside.
JPMorgan also rates Synovus Financial Corp., Webster Financial Corp. and Valley National Bancorp at Overweight, pointing to solid fundamentals and opportunities for growth.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42538384/vistra-entergy-nisource-pge-4-utilities-power-up-for-bullish-2025-says-jpmorgan">Vistra, Entergy, NiSource, PG&amp;E: 4 Utilities Power Up For Bullish 2025, Says JPMorgan</a></li>
</ul>
The images used was created using artificial intelligence MidJourney.

Equities

COLB

FCNCA

PNFP

TCBI

ZION

How To Invest $1,000 In Regional Banks For 2025: Top Wall Street Analyst Reveals His Top Picks

U.S. Treasury's Yellen Says Banking Supervision Is Critically Important To Reduce Risk Of Bank Failures, Financial Crises; Asked About Trump Considering Moves To Shrink Or Eliminate Bank Regulators, Says Current U.S. System Is Not Broken; Warns Against Interfering With Appropriate Regulation Of Bank Capital, Liquidity, Risk Taking To Ensure Sound Banking System

Overdraft <a href="https://www.benzinga.com/news/23/12/36272398/us-bank-slammed-for-illegally-collecting-millions-in-overdraft-fees-forced-to-pay-up-americans-are-f">issuers</a> including American Credit Unions, Consumer Bankers Association, American Bankers Association, and the Mississippi Bankers Association, have jointly filed a lawsuit challenging the Consumer Financial Protection Bureau&#8216;s new decision.
What Happened: The U.S. <a href="https://www.benzinga.com/topic/consumer-financial-protection-bureau">watchdog agency for consumer finance</a> decided to cap the overdraft fees which can add up to $5 billion in annual fee savings to the consumers, or $225 per household that pays overdraft fees.
&#8220;For far too long, the largest banks have exploited a legal loophole that has drained billions of dollars from Americans&#8217; deposit accounts,&#8221; said CFPB Director Rohit Chopra. &#8220;The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they&#8217;re charging on overdraft loans.&#8221;
However, banking and other lending institutions have opposed this move.
According to Consumer Bankers Association president and CEO Lindsey Johnson, &#8220;The CFPB's rule on overdraft services harms Americans who need it most—including the 26 million Americans who don&#8217;t have access to credit and thus stand to lose the most if overdraft services are restricted.&#8221;
The CBA includes JPMorgan Chase, Citi, TD Bank, BMO Bank, and Santander. American Bankers Association&#8217;s president and CEO Rob Nichols said, &#8220;CFPB's final overdraft rule exceeds the Bureau's statutory authority, ignores thoughtful industry and stakeholder feedback, and will harm the very consumers the CFPB claims to protect.&#8221;
&#8220;Financial hardships have serious consequences on families, and overdraft programs provide an affordable lifeline in these circumstances,&#8221; said America's Credit Unions president and CEO Jim Nussle. &#8220;The association is going to continue to fight through legal action to reverse this grave mistake from Director Chopra,&#8221; he added.
See Also: <a href="https://www.benzinga.com/24/12/42454495/microsoft-expects-800-million-impairment-charge-due-to-gms-cruise-exit-but-analysts-say-its-a-step-in-the-right-direction-for-automaker">Microsoft Expects $800 Million Impairment Charge Due To GM&#8217;s Cruise Exit, Analyst Says It&#8217;s A &#8216;Step In The Right Direction&#8217; For Automaker</a>
Why It Matters: According to CFPB&#8217;s new rules, lending institutions would have to choose one of the three options when charging for overdrafts.
The first one is to cap their overdraft fee at $5 per instance, while the second option is to cap their fee at an amount that can cover costs and losses. The third option gives freedom to the institution to charge discretionary fees and disclose the terms of their overdraft loan just like other loans.
According to Chopra, &#8220;Consumers have paid an estimated $280 billion in overdraft fees over the past two decades, including roughly $9 billion in 2022.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Many consumers have been hit by multiple fees in a day, because some banks have processed payments to trigger more and more overdraft fees. <a href="https://t.co/ItYPm1ZDnK">https://t.co/ItYPm1ZDnK</a>
&mdash; Rohit Chopra (@chopracfpb) <a href="https://twitter.com/chopracfpb/status/1867258208936472988?ref_src=twsrc%5Etfw">December 12, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Price Action: Several U.S. bank stocks took a hit on Thursday after the CFPB finalized the rule.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Stock</td>
<td>Closing price on Dec. 12, 2024</td>
<td>Change</td>
</tr>
<tr>
<td>Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>)</td>
<td>$70.80</td>
<td>-1.12%</td>
</tr>
<tr>
<td>JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>)</td>
<td>$241.53</td>
<td>-0.82%</td>
</tr>
<tr>
<td>Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>)</td>
<td>$71.43</td>
<td>-0.74%</td>
</tr>
<tr>
<td>Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)</td>
<td>$591.61</td>
<td>-0.16%</td>
</tr>
<tr>
<td>Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>)</td>
<td>$127.91</td>
<td>0.25%</td>
</tr>
</tbody>
</table>
</figure>
According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro data</a>, the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>) fell 1.1%, while the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) declined 1.2%.
Regional banks were affected, too.
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Stock</td>
<td>Closing price on Dec. 12, 2024</td>
<td>Change</td>
</tr>
<tr>
<td>Flagstar Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FLG#NYSE">FLG</a>)</td>
<td>$11.05</td>
<td>-2.13%</td>
</tr>
<tr>
<td>Citizens Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>)</td>
<td>$45.54</td>
<td>-1.49%</td>
</tr>
<tr>
<td>Regions Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>)</td>
<td>$25.05</td>
<td>-1.38%</td>
</tr>
<tr>
<td>Huntington Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>)</td>
<td>$17.17</td>
<td>-1.27%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/12/42460199/jpmorgan-reiterates-underweight-rating-on-supermicro-maintains-the-lowest-target-price-among-the-17-tracked-analysts">SMCI Stock Receives Harshest Price Target Among 17 Tracked Analysts As JPMorgan Maintains Underweight Rating On Super Micro: &#8216;No Significant Movement Of Orders&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Regulations

General

HBAN

US Lenders File Joint Lawsuit Against Consumer Finance Watchdog For Capping Overdraft Fees: Wells Fargo, JPMorgan, Citigroup Stocks In Focus

Merger and acquisitions activity peaked in the United States in 2021, but after SPACs got shellacked and the Biden administration took a harsher view of large-scale mergers, deals became fewer and further between.
This trend is expected to reverse in 2025 as the Federal Reserve lowers interest rates and a more M&amp;A-friendly Federal Trade Commission (FTC) enters the fold. Analysts at Goldman Sachs expect many <a href="https://finance.yahoo.com/news/goldman-sachs-sees-more-larger-162800585.html">larger-scale deals</a> to be explored in the next 12 months, and one may already be underway as Mondelez International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MLDZ#NASDAQ">MLDZ</a>) is again considering purchasing chocolate conglomerate Hershey Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>).
Today, we'll explore five more stocks that could be M&amp;A targets in 2025.
<h2 class="wp-block-heading">How We Made Our Picks</h2>
Fitch Ratings has identified <a href="https://www.fitchratings.com/research/corporate-finance/us-corporate-m-a-could-accelerate-in-2025-credit-implications-mixed-02-12-2024">several sectors</a> with ample dry powder and legroom for acquisitions, such as homebuilding and construction, aerospace, gaming and leisure, healthcare, banking, and (of course) tech. We looked for companies in these industries and narrowed down our selections based on growth potential, brand recognition, financial position, and number of potential suitors. These are primarily mid-size firms with market caps between $5 and $12 billion.
<h3 class="wp-block-heading">Dutch Bros Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BROS#NYSE">BROS</a>)</h3>
If you're annoyed waiting in long lines at Starbucks or Dunkin&#8217; for your morning coffee, you aren't alone. Even with mobile orders and online promos, drive-thru lines are a constant pressure point for big chains, and as coffee prices continue to rise, customers might consider eschewing the line altogether.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="304" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/Bros-1024x304.png" alt="" class="wp-image-690339" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/Bros-1024x304.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/Bros-300x89.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/Bros-768x228.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/Bros.png 1302w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Artisan coffee chains like Dutch Bros might be a way for bigger companies to gain a competitive edge without sacrificing quality. BROS is a fast-growing coffee chain with over 900 stores in the United States, mainly in the Western part of the country, that prides itself on quick drive-thru experiences and attentive service. While 900 stores might seem quaint to giants like Starbucks, this is impressive growth from the 135 stores in operation in 2009, and the company also sells its name-brand varieties online. Dutch Bros revenue growth has continued its steady ascent, and gross profits have more than doubled since 2020. BROS is a takeover target thanks to these expanding profits, minimal debt load, strong brand recognition, and potentially untapped markets in the coffee-crazed northeastern United States.
<h3 class="wp-block-heading">Walgreens Boots Alliance Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>)</h3>
Walgreens has long been a takeover target, but realistic dealmaking scenarios have failed to materialize, and the stock has been stuck in a multi-year decline. While a public acquisition has eluded WBA, 2025 could be the year the company returns to private markets.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="304" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/WBA-1024x304.png" alt="" class="wp-image-690340" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/WBA-1024x304.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/WBA-300x89.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/WBA-768x228.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163047/WBA.png 1302w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
On December 10, news broke that Sycamore Partners was <a href="https://www.benzinga.com/24/12/42421855/walgreens-stock-jumps-on-report-of-potential-private-equity-sale-what-you-need-to-know">exploring an acquisition</a> of Walgreens, who intend to take the company private and potentially split up its divisions. WBA stock has plummeted from a $100 billion market cap in 2015 to just $8.5 billion at the end of 2024, making a private market acquisition much more feasible.
<a href="https://bzresearch.myclickfunnels.com/earnings-gaps-masterclass-registration/?utm_source=RD-1213">Last Chance Before 2025 Earnings Season</a>
<h3 class="wp-block-heading">Roku Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>)</h3>
Roku's stock chart will forever be distorted by the COVID-19 pandemic and meme stock craze, which saw its price jump from $100 to $500 in less than a year. When rates began rising in early 2022, ROKU was decimated and has traded under $100 per share for the better part of the last two years. But Netflix and Disney+ have shown that streaming services are the new way Americans watch TV, and Roku provides hardware and software to bring these services into living rooms.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="299" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ROKU-1024x299.png" alt="" class="wp-image-690341" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ROKU-1024x299.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ROKU-300x88.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ROKU-768x224.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ROKU.png 1300w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
ROKU made a record $1.5 billion in gross profits in 2023 thanks to more customers ditching cable for streaming services requiring Roku's products, such as smart TVs, streaming sticks, and the all-new Roku Ultra, the company's fastest and highest-quality device. ROKU's market cap is just under $12 billion, which is couch cushion cash for companies like Disney, Netflix, or Apple that could benefit from adding a hardware supplier that can entice potential customers to sign up for their services (and steer them from the competition).
<h3 class="wp-block-heading">Zoom Video Communications Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>)</h3>
Another company with a rollercoaster stock chart is Zoom, the video conferencing service that kept people connected during the height of the COVID-19 pandemic. Zoom found itself in the right place at the right time, and its stock exploded from $76 in January 2020 to nearly $500 by the start of November. But by August 2022, the stock had given up all its COVID gains and settled back under $100.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="300" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ZM-1024x300.png" alt="" class="wp-image-690342" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ZM-1024x300.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ZM-300x88.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ZM-768x225.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163048/ZM.png 1302w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
ZM shares have traded under the $100 mark for most of the last two years, but the previous three months have shown the stock shaking off the cobwebs. In October, ZM's 50-day moving average made a bullish cross over the 200-day MA, and there's optimism that Zoom's infrastructure, brand recognition, and return to positive sales growth will make it a desirable acquisition in 2025. With a $26 billion market cap, Zoom needs a buyer with deep pockets like Google, Microsoft, or Apple, but the company has plenty of positive free cash flow and a sturdy balance sheet.
<h3 class="wp-block-heading">SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>)</h3>
Now, no one is actually looking to acquire a banking ETF. However, the small and mid-size bank sector is ripe for consolidation, and the performance of this index shows how much optimism has flooded the industry since Donald Trump's election night victory. In 2023, the number of FDIC-insured commercial banks <a href="https://www.statista.com/statistics/184536/number-of-fdic-insured-us-commercial-bank-institutions/">grew to 4,470</a>, the first expansion in more than two decades (over 8,000 banks were insured in 2000). Many market analysts believe this to be a one-time blip and expect consolidation to resume under new FTC leadership.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="300" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163103/KRE-1024x300.png" alt="" class="wp-image-690343" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163103/KRE-1024x300.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163103/KRE-300x88.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163103/KRE-768x225.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/12/12163103/KRE.png 1302w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The S&amp;P Regional Banking ETF got a massive boost on the Wednesday following the presidential election as a deregulation agenda paves the way for bank mergers and acquisitions. KRE is a relatively small fund with only $5.7 billion in assets under management, but it holds a diverse range of regional banking stocks. Over 140 banks and financial services firms fill the index, ranging from large caps like Truist Financial ($60 billion market cap) to niche local banks like Atlantic Union Bancshares (under $4 billion market cap). Selecting which of the more than 4,000 banks will be acquired is a monumental task; buying this small ETF is a way to take advantage of the overall M&amp;A trend.
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Photo via Shutterstock

Opinion

BROS

MLDZ

ROKU

5 Merger and Acquisition Targets to Buy Before Trump Takes Over

<a href="https://www.clevelandfed.org/collections/press-releases/2024/pr-20241206-presidents-speech-fourth-district-on-economy-and-monetary-policy" title="https://www.clevelandfed.org/collections/press-releases/2024/pr-20241206-presidents-speech-fourth-district-on-economy-and-monetary-policy">https://www.clevelandfed.org/collections/press-releases/2024/pr-20241206-presidents-speech-fourth-district-on-economy-and-monetary-policy</a>
&nbsp;

Fed's Hammack Says The Banking System Is In A Very Healthy Place; Consumers Really Supporting Economy, Household Balance Sheets Solid

The regional banking sector has spent much of the last two years making headlines for all the wrong reasons. <a href="https://www.fdic.gov/resources/resolutions/bank-failures/in-brief/2023">Bank failures</a> like Silicon Valley, Signature Bank, and First Republic Bank rocked the sector, and the SPDR Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) dropped more than 40% at the end of 2023.
Investors remained on edge to start 2024 following another pair of failures, but the sector has rebounded following the Federal Reserve's rate-cut strategy and the 2024 U.S. presidential election results.
The incoming Trump administration is expected to replace several top regulators, such as Linda Khan (at the FTC), Rohit Chopra (CFPB), and Gary Gensler (SEC), which could create an atmosphere for more mergers and acquisitions through less stringent regulation.
Regional banks stand to be some of the biggest beneficiaries of this attitude change, and KRE has already jumped 18% in the last month.
Let&#8217;s take a look at five of the most promising regional bank stocks to buy ahead of the new crop of regulators.
<h2 class="wp-block-heading">How We Narrowed It Down to Six Stocks to Buy</h2>
Looser capital guidelines and diminished regulatory scrutiny will benefit plenty of firms in the finance sector. We trimmed our regional bank stock list down to five based on the following criteria:
<ul>
<li>Beneficiary of Relaxed Deregulation &#8211; Several banking rules involving capital requirements (like Basel III) and liquidity standards could be relaxed during a second Trump admin, in addition to a more friendly M&amp;A environment. Regional banks can't meet these requirements as efficiently as larger national banks, so deregulation often benefits smaller banks.</li>
<li>Valuation Metrics &#8211; The banks on our list have affordable stocks compared to their sector peers based on metrics like Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B) rates.</li>
<li>Dividend Yield &#8211; If you own bank stocks, you want to be compensated with stock price appreciation and dividend income. These regional banks all pay higher dividend yields than the industry average.</li>
</ul>
<h2 class="wp-block-heading">Top Six Regional Banks to Buy</h2>
Based on the above criteria, here are five regional bank stocks to consider adding to your portfolio before a second Trump administration, and its new crop of top regulators, sets up shop in Washington.
<h3 class="wp-block-heading">US Bancorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USB#NYSE">USB</a>)</h3>
US Bancorp&#8217;s roots date back to the Civil War when it was awarded the 24th national bank charter of the United States. Today, it&#8217;s one of the largest regional banks in the United States, with a market cap of over $83 billion and 68,000 employees. USB shares have lagged in 2024, with a 23% year-to-date gain compared to 30% from KRE, but looser regulations could be a tailwind as the bank <a href="https://www.usbank.com/about-us-bank/company-blog/article-library/us-bancorp-completes-acquisition-of-union-bank.html">acquired MUFG Union Bank</a> in 2022 to expand operations into California, Oregon, and Washington. The stock has reasonable fundamental metrics like a 16.5 P/E ratio and 1.97 P/S ratio and pays a 3.73% dividend yield.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133051/USB-1024x395.png" alt="" class="wp-image-670667" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133051/USB-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133051/USB-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133051/USB-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133051/USB.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>)</h3>
KeyCorp has a market cap under $20 billion and less reach than bigger regional banks like US Bancorp, but the stock makes our list thanks to a combination of good value, high dividend yield, and potential growth from deregulation. The bank has two segments: Consumer Banking and Commercial Banking, with the commercial wing focused on small and mid-size business services. KeyBanc Capital Markets is the company's M/A wheelhouse, having negotiated more than 500 clients on mergers in the mid-size business space. KEY stock has the highest P/E ratio of banks on our list at 19.4 but rewards shareholders with a 4.17% dividend yield, and its P/B rate is bottom third in the sector at 1.3.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133059/KEY-1024x395.png" alt="" class="wp-image-670668" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133059/KEY-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133059/KEY-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133059/KEY-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133059/KEY.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Regions Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>)</h3>
Regions Financial doesn't have a hundred-plus-year history like US Bancorp or KeyCorp, but it does offer a variety of banking and wealth management services to clients across the southern region. RF shares have actually outperformed KRE so far in 2024 (42% vs 30%), and its debt/equity level of 0.35 is the lowest of our selections, indicating a well-capitalized bank poised to benefit from more risk-taking. The stock pays a 3.66% dividend yield with a 13.4 P/E ratio and 1.48 P/B ratio.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133104/RF-1024x395.png" alt="" class="wp-image-670669" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133104/RF-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133104/RF-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133104/RF-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133104/RF.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Truist Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>)</h3>
Formed during the merger of SunTrust Bank and BB&amp;T Corp, Truist Financial is the second-largest regional bank on our list, and one of the reasons is that KRE is up more than 30% this year. TFC shares have matched the regional banking ETF performance almost penny for penny in 2024, but the stock remains well below its 2022 all-time high. Truist has the lowest P/B ratio on our list at 1.08, pays a 4.36% dividend yield, and recently sold off its insurance and asset management subsidiaries to improve its liquidity and capitalization situation. Truist mainly serves states east of the Mississippi River but plans to expand operations in the Sun Belt. These plans could benefit from increased M/A activity and deregulation in the next few years.
<a href="https://www.benzinga.com/premium/ideas/matt-options-inner-circle-checkout-black-friday/?utm_source=WebRD-1129">BLACK FRIDAY: Don&#8217;t Miss Out on Big Gains With Matt Maley &#8211; $1000 Off</a>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133110/TFC-1024x395.png" alt="" class="wp-image-670670" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133110/TFC-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133110/TFC-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133110/TFC-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133110/TFC.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">M&amp;T Bank (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>)</h3>
M&amp;T Bank (which stands for Manufacturers and Traders) is one of the nation&#8217;s oldest banks, with predecessors tracing back as far as 1856. MTB has a $36 billion market cap and pays a 2.45% dividend, the lowest on our list but easily sustained by the company's income. The stock has been one of 2024's biggest success stories, posting an astonishing 60% gain in 2024, which doubled the regional banking ETF. Following the bank's strong October earnings report, more gains could be on the horizon, causing many analysts to upgrade their ratings and price targets. M&amp;T Bank has a 16.3 P/E ratio and a 1.4 P/B ratio, and its net profit margin of 18.7 is bested only by Regions Financial.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133115/MTB-1024x395.png" alt="" class="wp-image-670671" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133115/MTB-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133115/MTB-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133115/MTB-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133115/MTB.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Discover Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>)&nbsp;</h3>
Discover Financial has been linked with Capital One since the latter announced intentions to purchase the former for $35 billion in February. However, the deal has been in limbo since New York regulators began investigating the acquisition for possible antitrust violations. DFS shares traded in a tight range from July until the week of the election, but both DFS and COF stocks immediately gapped up on the Wednesday following Trump's victory. Investors anticipate the deal going through in a less harsh regulatory environment, so DFS shares could continue to rally in the weeks ahead.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="395" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133121/DFS-1024x395.png" alt="" class="wp-image-670672" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133121/DFS-1024x395.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133121/DFS-300x116.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133121/DFS-768x296.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/29133121/DFS.png 1364w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Keep in mind that campaign promises don't always materialize in reality, and the previous Trump administration was often as much bark as bite. Less regulation and more M&amp;A are expected, but investments based on political overtures are short-term bets by nature. Don't hang on to losing stocks if the regulatory environment we get is different than anticipated.
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Image via Midjourney

6 Regional Bank Stocks to Buy Before Trump Names New SEC Leadership

Small-cap stocks are positioned for significant upside in 2025, driven by recovering earnings, potential corporate tax cuts, and favorable valuations, according to Brian Manby, investment strategy <a href="https://www.benzinga.com/exclusives?page=5">analyst at WisdomTree. </a>
In an exclusive interview with Benzinga, Manby shared his optimism for the Russell 2000 Index – as tracked by the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) – which has already surged 23% year-to-date and <a href="https://www.benzinga.com/news/small-cap/24/11/42171130/russell-2000-dow-sp-500-all-achieve-record-highs-in-wall-streets-historic-day-bitcoin-gold-tumble-whats-driving-markets-monday">achieved record highs on Monday</a>, surpassing its previous peak from November 2021.
Manby said their domestic focus positions them as key beneficiaries of U.S.-centered policies, such as tax cuts and tariffs, while their relatively lower valuations create a compelling investment case for investors unwilling to excessively concentrate their portfolio on large caps.
<h3 class="wp-block-heading">Small Caps, Regional Banks: Positioned For Growth In 2025</h3>
The small-cap rally in 2024 has been particularly strong in the regional banking sector, with the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) soaring 35% this year. 
This outperformance was driven by combination of factors, including Federal Reserve rate cuts, U.S. economic resilience, and the anticipation of deregulation under a Republican-controlled Congress. 
The expert stressed that regional banks could continue to benefit in the coming year as policy tailwinds strengthen their earnings potential. 
"We think there&#8217;s a potential opportunity for a catch-up rally, hopefully bolstered by the deregulatory agenda of the incoming administration. We are pretty optimistic on small cap financials and regional banks in particular." he said.
&#8220;Any sort of pressure that the incoming administration can take off of the small cap financials operations would be really, really welcomed by the sector,&#8221; he added.
According to the house view, small-cap earnings projections for 2025 are optimistic, with potential upside tied to fiscal stimulus and economic expansion. Additionally, small-cap companies, with their U.S.-centric operations, stand to benefit significantly from proposed corporate tax rate reductions, such as a potential 15% tax rate championed by Republicans.
Manby also addressed the potential impact of tariffs under a Republican administration. 
"We think that the prospect of tariffs would be a bit of a greater headwind for large caps. Since small caps are more tied to the domestic economy, we think they would probably benefit," Manby said.
Also Read: <a href="https://www.benzinga.com/news/retail-sales/24/11/42170721/thanksgiving-dinner-gobbles-up-19-more-cash-this-year-many-holiday-hosts-already-regret-their-decision">Thanksgiving Dinner Gobbles Up 19% More Cash This Year, Many Holiday Hosts &#8216;Already Regret Their Decision&#8217;</a>
<h3 class="wp-block-heading">Small Caps Are Still Sharply Undervalued Compared To Large Caps</h3>
Discussing the valuation picture, Manby highlighted that small caps remain discounted relative to large caps, and that creates a strong opportunity for investors. 
&#8220;The Russell 2000 is still very discounted relative to the S&amp;P 500. It basically trades at about 2 standard deviations below its long term multiple versus the S&amp;P 500 and that gives us a lot of confidence in the valuation opportunity as well,&#8221; Manby stated.
Looking ahead to 2025, WisdomTree remains optimistic about the potential for small caps to outperform. "This is a great opportunity for U.S.-based investors seeking returns without paying lofty multiples," Manby said.
Furthermore, he highlighted that &#8220;ongoing potential rate cuts would certainly be beneficial within the broader small cap universe.&#8221;
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42170135/its-the-most-wonderful-time-of-the-year-for-the-stock-market-history-says">&#8216;It&#8217;s The Most Wonderful Time Of The Year&#8217; For The Stock Market, History Says</a></li>
</ul>
Photo: Shutterstock

Analyst Ratings

EXCLUSIVE: Small Caps Hit Records As Expert Says Russell 2000 'Still Very Discounted' Compared To S&P 500

Howard Lutnick, chief executive officer of Cantor Fitzgerald &#8211; which has about $3.53 billion in holdings &#8211; has been named as the co-chair of President-elect Donald Trump&#8216;s transition team. Lutnick will lead the U.S. Department of Commerce.
Top Holdings Of Lutnick&#8217;s Firm: According <a href="https://www.sec.gov/Archives/edgar/data/1024896/000092963824003880/0000929638-24-003880-index.html">to</a> Cantor Fitzgerald&#8217;s third-quarter 13F filings, top holdings of the firm include SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), GCM Grosvenor Inc.(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GCMG#NASDAQ">GCMG</a>), and Rumble Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUM#NASDAQ">RUM</a>).
In the September quarter, Lutnick&#8217;s financial services firm purchased about 1.17 million shares of Tesla with 1.74 million put options in Q3. It bumped up its call options by 4,967% to 152,000 shares from the <a href="https://13f.info/13f/000092963824003880/compare/000092963824002803">quarter-ended in July</a>. The total value of the fund&#8217;s exposure to Tesla stood at $804 million in Q3.
Cantor Fitzgerald also increased its position in Nvidia by 7,015%, <a href="https://13f.info/13f/000092963824003880/compare/000092963824002803">compared to the second quarter</a>, with a total holding of 3.56 million shares in Q3. It increased Nvidia puts in Q3 by 1,268% to 5.46 million shares and Nvidia call options by 3,213% to 778,600 shares. The total exposure to Nvidia in value terms stood at $1.192 billion.
The fund had 1.23 million of put options and 600,000 call options on SPDR S&amp;P 500 ETF TR representing a total value of $1.05 billion in Q3. GCM Grosvenor and Rumble reflected 2.1% and 1.2% of the fund&#8217;s total holdings, valued at $73.03 million and $42.04 million, respectively.
See Also: <a href="https://www.benzinga.com/news/treasuries/24/11/42157400/economist-peter-schiff-criticizes-trumps-treasury-pick-scott-bessent-says-he-will-have-to-find-buyers-for-trillions-in-new-debt-each-year-his-job-is-to-continue-the-ponzi">Economist Peter Schiff Criticizes Trump&#8217;s Treasury Pick, Scott Bessent, Says He Will Have To Find Buyers For Trillions In New Debt Each Year</a>
Why It Matters: Lutnick was also considered as a top pick for the Secretary of Treasury along with Scott Bessent. Tesla CEO and Trump&#8217;s Department of Government Efficiency (DOGE) co-lead Elon Musk <a href="https://www.benzinga.com/etfs/24/11/42044642/trump-appears-frustrated-as-elon-musk-chimes-in-on-treasury-secretary-adds-more-names-to-a-list-of-potential-picks">rallied for Lutnick</a> in a post on his social media platform, X, calling on others to weigh in on the appointment.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Would be interesting to hear more people weigh in on this for <a href="https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw">@realDonaldTrump</a> to consider feedback. My view fwiw is that Bessent is a business-as-usual choice, whereas <a href="https://twitter.com/howardlutnick?ref_src=twsrc%5Etfw">@howardlutnick</a> will actually enact change. Business-as-usual is driving America bankrupt, so we need change… <a href="https://t.co/igGLZOJ8wz">https://t.co/igGLZOJ8wz</a>
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1857819784865362211?ref_src=twsrc%5Etfw">November 16, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
However, Bessent was appointed the Treasury Secretary. According to <a href="https://www.benzinga.com/government/regulations/24/11/41909846/trumps-treasury-pick-frontrunner-scott-bessent-could-shift-wall-street-crypto" target="_blank" rel="noreferrer noopener">betting markets</a>, Bessent was a frontrunner with an 82% probability of securing the nomination.
The third-quarter 13F filing from Bessent's Key Square Group fund shows that they have liquidated all their holding in the September quarter.
In the <a href="https://13f.info/13f/000117266124003417-key-square-capital-management-llc-q2-2024" target="_blank" rel="noreferrer noopener">second quarter</a>, the fund had a highly concentrated portfolio, with equal investments in two banking-focused ETFs: the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) and the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), each making up 50% of the fund.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/11/42150794/trump-picks-hedge-fund-exec-scott-bessent-as-treasury-secretary-what-president-elects-choice-means-for-americas-economic-future" target="_blank" rel="noreferrer noopener">Trump Picks Hedge Fund Exec Scott Bessent As Treasury Secretary: What President-Elect's Choice Means For America's Economic Future</a></li>
</ul>
Photo courtesy: Cantor Fitzgerald

Politics

GCMG

TSLA

Trump's Commerce Secretary Pick Howard Lutnick's Fund Owns $1.19B In Nvidia, $804M In Tesla: Here Is A Look At His Portfolio

Economist Peter Schiff has criticized President-elect Donald Trump&#8216;s <a href="https://www.benzinga.com/government/regulations/24/11/42150794/trump-picks-hedge-fund-exec-scott-bessent-as-treasury-secretary-what-president-elects-choice-means-for-americas-economic-future">decision to pick</a> hedge fund executive Scott Bessent as the new U.S. Treasury Secretary.
What Happened: According to his post on X (formerly Twitter), Schiff took a jibe at Trump and quipped that Bessent should be called the &#8220;Secretary of the Debt&#8221; instead of &#8220;Secretary of the Treasury.&#8221;
Schiff said the new Treasury Secretary&#8217;s job would be &#8220;to continue the Ponzi,&#8221; because Trump has promised tax cuts during his tenure.
Reducing tax collections could lead to higher government borrowings in the debt market, however, Trump remains confident that his proposed task force DOGE or the Department of Government Efficiency would successfully <a href="https://www.benzinga.com/24/11/42131911/donald-trump-appointed-doge-to-have-marginal-impact-saving-50-100-billion-says-analyst-as-elon-musk-aims-to-target-500-billion-plus-in-federal-expenditures">reduce &#8220;wasteful spending&#8221;</a> without the need to borrow more.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Trump picked Scott Bessent to be the new Secretary of the Treasury. But his actual title should be Secretary of the Debt. His job is to continue the Ponzi. He must find buyers for trillions in new Treasury debt each year and convince current holders to roll it over as it matures.
&mdash; Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1860323656796185017?ref_src=twsrc%5Etfw">November 23, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
See Also: <a href="https://www.benzinga.com/government/regulations/24/11/42150794/trump-picks-hedge-fund-exec-scott-bessent-as-treasury-secretary-what-president-elects-choice-means-for-americas-economic-future">Trump Picks Hedge Fund Exec Scott Bessent As Treasury Secretary: What President-Elect&#8217;s Choice Means For America&#8217;s Economic Future</a>
As Treasury Secretary, Bessent will replace outgoing Secretary Janet Yellen, overseeing financial institutions and combating financial crimes at a time when <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42140842/sp-500-faces-volatile-2025-as-inflation-boom-could-return-bank-of-america-strategist" target="_blank" rel="noreferrer noopener">the national debt has ballooned to $36 trillion</a>.
It&#8217;s not just the ballooning deficit that is a cause of concern &#8211; the interest payments on this debt set the alarm bells ringing.
Billionaire investor Ray Dalio <a href="https://www.benzinga.com/news/24/09/40934156/billionaire-ray-dalio-warns-fed-faces-tough-road-ahead-balancing-interest-rate-cuts-and-enormous-us">warned that the U.S.</a> may have to resort to monetizing its debt, similar to Japan&#8217;s approach. This could lead to depreciated currency values and lower bond yields.
&#8220;I see a big depreciation in the value of that debt through a combination of artificial low real rates, so you won&#8217;t be compensated,&#8221; Dalio said.
The government has <a href="https://www.benzinga.com/news/24/09/40869188/robert-kiyosaki-rings-alarm-bells-over-soaring-us-debt-the-dollar-is-trash">already spent $1 trillion</a> on footing the interest bill on its national debt this year.
Why It Matters: The role of Treasury Security has been previously criticized by other economists as well. Gordon Johnson, chief executive officer and founder at GLJ Research, <a href="https://www.benzinga.com/24/11/42088394/economist-gordon-johnson-slams-federal-reserve-for-asset-owner-centric-policies-says-fed-needs-to-focus-on-the-real-economy-over-stock-markets">recently said in a podcast</a> that there is constant intervention by the U.S. Secretary of the Treasury, Janet Yellen along with Federal Reserve's Chairman, Jerome Powell, whenever there is a spike in the benchmark yields.
"In early 2024, the Fed cut its pace of quantitative tightening by $30 billion a month, which is just the amount they were letting roll off. And recently, Janet Yellen announced that she is going to buy $4 billion in U.S. Treasury bonds per week. There is just constant intervention by these entities whenever the yields start to spike. It's them trying to disallow any dysfunction or rather I would argue functioning in the Treasury markets."
Also read: <a href="https://www.benzinga.com/24/11/42088394/economist-gordon-johnson-slams-federal-reserve-for-asset-owner-centric-policies-says-fed-needs-to-focus-on-the-real-economy-over-stock-markets">Gordon Johnson Slams Federal Reserve For Asset-Owner Centric Policies, Says Jerome Powell Needs To Focus On &#8216;Real Economy&#8217;: &#8216;&#8230;The Stock Market Will Be Fine&#8217;</a>
In October, Bessent assured that a new Trump administration would <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41308042/trump-adviser-defends-ex-presidents-economic-policies-strong-dollar-would-natural" target="_blank" rel="noreferrer noopener">support a strong dollar</a>, countering previous suggestions of a weaker dollar to boost exports. According to&nbsp;<a href="https://www.benzinga.com/government/regulations/24/11/41909846/trumps-treasury-pick-frontrunner-scott-bessent-could-shift-wall-street-crypto" target="_blank" rel="noreferrer noopener">betting markets</a>, Bessent was a frontrunner with an 82% probability of securing the nomination. His appointment could significantly impact Wall Street and the crypto sector.
Scott Bessent&#8217;s Holdings As Per 13F Filings
The latest <a href="https://13f.info/13f/000117266124004716-key-square-capital-management-llc-q3-2024">third-quarter 13F filing</a> from Bessent's Key Square Group fund shows that they have liquidated all their holding in the September quarter.
In the <a href="https://13f.info/13f/000117266124003417-key-square-capital-management-llc-q2-2024">second quarter</a>, the fund had a highly concentrated portfolio, with equal investments in two banking-focused ETFs: the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) and the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), each making up 50% of the fund.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/42137295/as-mstrs-michael-saylor-says-warren-buffett-is-destroying-berkshire-capital-analyst-suggests-overpricedhot-stock-market-could-be-the-reason-oracle-of-omaha-is-sitting-on-325b-cash">As MSTR&#8217;s Michael Saylor Says Warren Buffett Is &#8216;Destroying&#8217; Berkshire Capital, Analyst Suggests &#8216;Overpriced…Hot Stock Market&#8217; Could Be The Reason Oracle Of Omaha Is Sitting On $325B Cash</a></li>
</ul>
Photo courtesy: Shutterstock

Economist Peter Schiff Criticizes Trump's Treasury Pick, Scott Bessent, Says He Will Have To Find Buyers For Trillions In New Debt Each Year: 'His Job Is To Continue The Ponzi'

President-elect Donald Trump has picked hedge fund executive Scott Bessent as the U.S. Treasury Secretary.
What Happened: Bessent, 62 and founder of Key Square Group, was a leading candidate, <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/42091821/could-donald-trumps-potential-treasury-secretary-be-out-of-his-depth-on-crypto-policy-polymarket-traders-just-cant-decide-on-a-favorite">competing with</a> former Fed Governor Kevin Warsh and private equity executive Marc Rowan.
While sharing the decision on Friday via his social media platform Truth Social, Trump lauded Bessent as "one of the World's foremost International Investors and Geopolitical and Economic Strategists."
<figure class="wp-block-image size-large"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/22205557/Screenshot-2024-11-23-at-7.25.49%E2%80%AFAM-900x1024.png" alt="" class="wp-image-661913" /><figcaption class="wp-element-caption">Source: Truth Social</figcaption></figure>
See Also: <a href="https://www.benzinga.com/news/legal/24/11/42147981/trumps-hush-money-sentencing-delayed-as-legal-immunity-debate-escalates">Trump&#8217;s Hush Money Sentencing Delayed As Legal Immunity Debate Escalates</a>
Bessent is known for his support of gradual tariffs and deregulation, aligning with Trump&#8217;s economic vision, which includes reviving manufacturing and achieving energy independence.
Despite his previous role as chief investment officer for George Soros' fund, Trump expressed confidence in Bessent&#8217;s ability to improve U.S. competitiveness and address trade imbalances.
Why It Matters: As Treasury Secretary, Bessent will replace outgoing Secretary Janet Yellen, overseeing financial institutions and combating financial crimes at a time when <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42140842/sp-500-faces-volatile-2025-as-inflation-boom-could-return-bank-of-america-strategist">the national debt has ballooned to $36 trillion</a>.
According to <a href="https://www.benzinga.com/government/regulations/24/11/41909846/trumps-treasury-pick-frontrunner-scott-bessent-could-shift-wall-street-crypto">betting markets</a>, Bessent was a frontrunner with an 82% probability of securing the nomination. His appointment could significantly impact Wall Street and the crypto sector.
In October, Bessent assured that a new Trump administration would <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41308042/trump-adviser-defends-ex-presidents-economic-policies-strong-dollar-would-natural">support a strong dollar</a>, countering previous suggestions of a weaker dollar to boost exports.
Despite Elon Musk&#8217;s support for Howard Lutnick, <a href="https://www.benzinga.com/etfs/24/11/42044642/trump-appears-frustrated-as-elon-musk-chimes-in-on-treasury-secretary-adds-more-names-to-a-list-of-potential-picks">Trump favored Bessent&#8217;s</a> business-as-usual approach.
In July, Bessent gained attention for his optimistic stance on cryptocurrency, suggesting he might support digital assets if confirmed. &#8220;Crypto is about freedom and the crypto economy is here to stay,&#8221; he stated at the time.
The latest 13F filing from Bessent&#8217;s Key Square Group fund shows a highly concentrated portfolio, with equal investments in two banking-focused ETFs: the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) and the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), each making up 50% of the fund.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/24/11/42146895/are-you-rich-enough-to-benefit-from-trumps-tax-breaks-heres-how-much-youd-need-to-be-part-of-the-top-5">Are You Rich Enough To Benefit From Trump&#8217;s Tax Breaks? Here&#8217;s How Much You&#8217;d Need To Be Part Of The Top 5%</a></li>
</ul>
Disclaimer:&nbsp;This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock

Trump Picks Hedge Fund Exec Scott Bessent As Treasury Secretary: What President-Elect's Choice Means For America's Economic Future

Prominent macro hedge fund manager Scott Bessent is emerging as the frontrunner for Treasury Secretary in <a href="https://www.benzinga.com/topic/donald-trump">President-elect Donald Trump's administration.</a>
According to betting markets, Bessent has surged well ahead of other contenders, positioning him as a top pick for the critical role at the Treasury.
<h3 class="wp-block-heading">Betting Markets Favor Bessent For Treasury</h3>
As of Nov. 12, betting odds on CFTC-regulated platform Kalshi show Bessent with an 82% probability of securing the nomination, followed by John Paulson at 7% and Jay Clayton at 3%. 
Bessent's background as a successful hedge fund manager with a macroeconomic focus appears to resonate with Trump's key advisers.
Bessent currently leads Key Square Group, a Connecticut-based hedge fund with assets under management (AUM) of approximately $307 million. 
<h3 class="wp-block-heading">Bessent's Take On Crypto: &#8216;Crypto Is About Freedom&#8217;</h3>
In July, Bessent made headlines with his bullish views on cryptocurrency, signaling he could be an advocate for digital assets if appointed. 
Speaking on Fox Business, he praised crypto for attracting a new generation of investors, especially those disillusioned by traditional markets after the 2008 financial crisis.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Here are the full comments on <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw">#crypto</a> and <a href="https://twitter.com/hashtag/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#bitcoin</a> Bessent made on <a href="https://twitter.com/FoxBusiness?ref_src=twsrc%5Etfw">@FoxBusiness</a> in July. <a href="https://t.co/3O09jKZLJD">https://t.co/3O09jKZLJD</a> <a href="https://t.co/ggeLHs5JVc">pic.twitter.com/ggeLHs5JVc</a>
&mdash; Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1856204133901963512?ref_src=twsrc%5Etfw">November 12, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
"Crypto is about freedom and the crypto economy is here to stay," Bessent said.
"One of the most exciting things about Bitcoin is it's bringing in young people, people who haven't participated in markets before. A strong market culture in the U.S., with people believing the markets work for them, is a cornerstone of capitalism."
With Bessent at the Treasury, crypto advocates might hope for a more favorable regulatory environment. 
His positive views could align with policies that encourage innovation in digital assets, potentially supporting the growth and the rate of penatration of Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) and other cryptocurrencies.
<h3 class="wp-block-heading">Wall Street Impact: Bessent&#8217;s Banking Playbook</h3>
Bessent's investment portfolio at Key Square Group offers insights into his potential impact on Wall Street. 
According to Key Square&#8217;s latest 13F filing, the fund held highly concentrated positions in two banking-focused ETFs: the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) and the SPDR S&amp;P Bank ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KBE#NYSE">KBE</a>), each representing 50% of the fund&#8217;s portfolio.
Since the election results indicated a Trump victory and Republican control of Congress, the KRE ETF has rallied by 15.2%, and the KBE ETF has surged 13.5%, reflecting optimism about banking-friendly policies under the incoming administration.
Year-to-date, the KRE ETF is up 27%, while KBE has gained 34%.
For Wall Street, Bessent&#8217;s appointment might signal a Treasury more open to financial innovation, deregulation, and support for small and mid-sized banks. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/federal-reserve/24/11/41900128/trump-vs-powell-dec-18-fed-meeting-sets-stage-for-new-tensions">Trump Vs. Powell: Dec. 18 Fed Meeting Sets Stage For New Tensions</a></li>
</ul>
Photo: Shutterstock

Trump's Treasury Pick Frontrunner Scott Bessent Could Shift Wall Street, Crypto

The &#8220;Trump-related everything rally&#8221; reignited across markets on Monday, with heightened focus on last week's top performers like small caps, financials, Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), and cryptocurrencies, all surging as the <a href="https://www.google.com/url?sa=t&amp;source=web&amp;rct=j&amp;opi=89978449&amp;url=https://www.benzinga.com/markets&amp;ved=2ahUKEwiQxOXV7NSJAxWUTKQEHQWeNCEQFnoECB8QAQ&amp;usg=AOvVaw1FmExYgZnKyK1W0mkY7TrX">new trading week began.</a>
The Russell 2000 Index outperformed major large-cap indices, nearing a retest of its all-time high from November 2021.
Financials shone brightest again, with both large and regional banks posting strong gains. The SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) surged 3.9%, reaching levels last seen in August 2022.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) also dominated headlines, surpassing the $85,000 milestone and fueling widespread gains across other crypto assets.
Major crypto-related stocks, including Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), rallied nearly 22%, hitting highs last seen in late November 2021. MARA Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) soared 25%, with Riot Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIOT#NASDAQ">RIOT</a>) and CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSLK#NASDAQ">CSLK</a>) both up by 21%.
Within tech, Tesla continued its rally, while the rest of the sector lagged, weighed down by sharp declines in semiconductors following new AI-related export restrictions to China, impacting Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Elsewhere, the U.S. dollar extended its gains, while Treasury yields held steady, with the 10-year yield hovering around 4.3%.
Prices tumbled in commodities, with the exception of natural gas, which rose roughly 10%. Gold dropped over 2%, and oil fell by 3%.
<h3 class="wp-block-heading">Monday&#8217;s Performance In Major US Indices, ETF</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Index</th>
<th>Price</th>
<th>% chg (1 day)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Russell 2000</td>
<td>2,437.75</td>
<td>1.6%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>44,328.14</td>
<td>0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>6,001.80</td>
<td>0.1%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>21,060.25</td>
<td>-0.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:47 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent111124&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) held steady at $598.43.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.7% to $443.23.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) inched 0.3% lower to $512.45.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.6% to $242.00.</li>
<li>The&nbsp;Financials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, rising 1.8%. The&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 0.8%.</li>
</ul>
<h3 class="wp-block-heading">Monday&#8217;s Stock Movers</h3>
Stocks reacting to earnings reports were Monday.com ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMDY#NASDAQ">AMDY</a>) down 15% and Aramark (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARMK#NYSE">ARMK</a>), up 1%.
Read Next:
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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41883820/trump-trade-sparks-biggest-financial-stock-inflows-in-2-years">Trump Trade Sparks Biggest Financial Stock Inflows In 2 Years</a></li>
</ul>
Image created using artificial intelligence via Dall-E.

Mid Cap

Small Cap

Tidal Trust II Yieldmax AMD Option Income Strategy ETF

AMDY

ARMK

CSLK

RIOT

Small Caps, Financials Rally As Bitcoin Blasts Past $85,000: What's Driving Markets Monday?

Financial stocks are basking in a post-election rally after Donald Trump's election win as investors anticipate a friendlier regulatory landscape for banks, brokers and<a href="https://www.benzinga.com/markets"> consumer finance companies</a>.
With expectations of deregulation and possible tax cuts, traders are piling into financials at levels not seen in years.
The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) jumped over 5% last week, hitting fresh record highs, while weekly inflows surged to $1.573 billion—the highest in over two years. 
Regional banks, in particular, were on fire, with the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) skyrocketing nearly 11% and seeing $1.09 billion in inflows, marking its largest influx of money since March 2023.
<h3 class="wp-block-heading">Key Drivers: Deregulation, Tax Cuts Fuel Investor Optimism</h3>
Investors are betting on a wave of Trump-favored financial reforms that could benefit the sector. 
Richard Ramsden, a Goldman Sachs analyst, highlighted that "the market is pricing in the potential for changes to a number of proposed regulations, a step up in capital markets activity, as well as the potential for a reduction in the corporate tax rate."
Potential regulatory changes under Trump could include:
<ol>
<li>401K Reform: Opening up retirement plans to private investments could attract a flood of new capital.</li>
<li>Relaxed Antitrust Regulations: A more lenient antitrust stance may spark increased mergers and acquisitions (M&amp;A) activity.</li>
<li>Reduced SEC Oversight: There is limited clarity on whether the SEC will continue probing brokers' sweep pricing practices.</li>
<li>Crypto-Friendly Policies: Financial firms with crypto exposure may benefit from a more favorable regulatory environment and higher digital asset prices.</li>
</ol>
<h3 class="wp-block-heading">Goldman Sachs's Top Picks Among Financials Stocks</h3>
In anticipation of these shifts, Ramsden and his team have identified several top picks across the financial sector. 
Here's where they see the biggest potential gains:
<ul>
<li>Large Banks: Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), JPMorgan Chase &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), and Wells Fargo &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>).</li>
<li>Consumer Finance: Bread Financial Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BFH#NYSE">BFH</a>), Synchrony Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SYF#NYSE">SYF</a>), and Capital One Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>).</li>
<li>Capital Markets: Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>), Apollo Global Management Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APO#NYSE">APO</a>), KKR &amp; Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KKR#NYSE">KKR</a>), LPL Financial Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LPLA#NASDAQ">LPLA</a>), Tradeweb Markets Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TW#NASDAQ">TW</a>), Evercore Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EVR#NYSE">EVR</a>), and PJT Partners Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PJT#NYSE">PJT</a>).</li>
</ul>
<h3 class="wp-block-heading">Steeper Yield Curve Expected to Boost Regional Banks</h3>
As markets react to potential economic stimulus and reduced regulatory pressure, analysts anticipate a steeper yield curve, which could be a windfall for banks with heavy exposure to fixed-rate assets. 
Around 60% of both regional and large banks' balance sheets consist of fixed-rate holdings, positioning them to profit as long-term rates rise.
Ramsden's picks for banks that stand to gain the most from a steeper yield curve include:
Regional Banks: 
<ul>
<li>Citizens Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>)</li>
<li>Comerica Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMA#NYSE">CMA</a>)</li>
<li>First Hawaiian Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FHB#NASDAQ">FHB</a>)</li>
<li>Zions Bancorporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZION#NASDAQ">ZION</a>)</li>
<li>Truist Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>)</li>
<li>Huntington Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>)</li>
<li>Regions Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RF#NYSE">RF</a>)</li>
<li>PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>)</li>
<li>Ally Financial Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALLY#NYSE">ALLY</a>).</li>
</ul>
<h3 class="wp-block-heading">Surge in Capital Velocity: M&amp;A and Trading Boost Expected</h3>
Trump's pro-business stance is also expected to accelerate capital velocity in the M&amp;A and equity capital markets, providing a strong backdrop for trading activity. 
According to Ramsden, large banks like Morgan Stanley (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MS#NYSE">MS</a>) could be the biggest beneficiaries, while among regional banks,&nbsp;KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>)&nbsp;and&nbsp;Citizens Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CFG#NYSE">CFG</a>)&nbsp;stand out.
Investment banks could also see a boost, with&nbsp;Jefferies Financial Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JEF#NYSE">JEF</a>),&nbsp;Moelis &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MC#NYSE">MC</a>),&nbsp;PJT Partners Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PJT#NYSE">PJT</a>), and&nbsp;Piper Sandler Companies (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PIPR#NYSE">PIPR</a>)&nbsp;positioned to capitalize on a more active M&amp;A market. 
In the alternative asset management space,&nbsp;Carlyle Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CG#NASDAQ">CG</a>),&nbsp;KKR,&nbsp;Apollo,&nbsp;TPG Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TPG#NASDAQ">TPG</a>), and&nbsp;Ares Management Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARES#NYSE">ARES</a>)&nbsp;are expected to benefit from an uptick in private equity deal flow.
<h3 class="wp-block-heading">Tax Cut Hopes Could Supercharge Regional Banks</h3>
Financial stocks are uniquely positioned to benefit from any corporate tax reductions, given that 90% of their earnings come from the U.S. and are currently taxed at an average rate of 23%. After the 2017 tax reform slashed the corporate tax rate from 35% to 21%, financials saw their effective tax rate drop by 10 percentage points.
Ramsden estimates that if the Trump administration pursues another tax cut, regional banks would likely see the most significant upside. 
His top tax-cut beneficiaries include&nbsp;Moelis &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MC#NYSE">MC</a>),&nbsp;American Express Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AXP#NYSE">AXP</a>),&nbsp;Evercore Inc.,&nbsp;Bread Financial Holdings,&nbsp;Piper Sandler,&nbsp;First Citizens BancShares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCNCA#NASDAQ">FCNCA</a>),&nbsp;Synovus Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNV#NYSE">SNV</a>), and&nbsp;Western Alliance Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>).
<h3 class="wp-block-heading">Insurers to Benefit from Steeper Curve, P&amp;C Pricing Power</h3>
The insurance sector may also stand to gain under Trump's pro-business policies. Ramsden expects potential increases in claim costs but sees positive momentum for property and casualty pricing.
Insurers with substantial U.S. exposure and a favorable position on the yield curve could see tailwinds.
Ramsden's picks in the insurance space include&nbsp;W.R. Berkley Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WRB#NYSE">WRB</a>),&nbsp;Hartford Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HIG#NYSE">HIG</a>), and&nbsp;The Travelers Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>), which he believes are better positioned than brokers to benefit from these trends.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/global/24/11/41857487/exclusive-trump-victory-triggers-reshoring-rally-as-supply-chain-security-outweighs-cost">EXCLUSIVE: Trump Victory Triggers &#8216;Reshoring&#8217; Rally As Supply Chain Security Outweighs Cost</a></li>
</ul>
Image created using artificial intelligence via Midjourney and Shutterstock.

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