Shares of major U.S. banks including JPMorgan Chase & Co. ( JPM ) , Bank of America Corp ( BAC ) and Wells Fargo & Co ( WFC ) surged on Wednesday following Donald Trump's victory in the 2024 presidential election. Investors are betting on the potential for softer regulations under a GOP-led administration. Here’s what you need to know.

What To Know: The SPDR S&P Bank ETF saw a rise of more than 11%, while the SPDR S&P Regional Banking ETF , which focuses on smaller banks, surged over 13%, both hitting new 52-week highs on Wednesday.

Following Trump's election win this week, Wall Street analysts have noted a potential shift in the regulatory environment for the banking industry, according to CNBC.

Bank of America ( BAC ) analyst Ebrahim Poonawala called the election outcome "positive for bank stocks" and predicted a "more balanced regulatory backdrop."

See Also: Jamie Dimon Doesn’t Plan To Join Trump Administration, Affirms Commitment to JPMorgan ( JPM )

Jaret Seiberg, an analyst at TD Cowen, noted that a Trump presidency could mean reduced scrutiny from the Consumer Financial Protection Bureau (CFPB).

“Donald Trump is the candidate where you ignore what he says and focus on what you expect him to do," Seiberg wrote in a client note, adding that Trump's regulators would likely scale back on CFPB enforcement and reassess capital requirements for big banks.

Seiberg also pointed out that banks might benefit from lower capital requirements, stable credit card fee policies and friendlier crypto regulations. However, he cautioned that Trump's stance on tariffs and immigration could create inflationary pressures.

Price Action: JPMorgan Chase ( JPM ) shares closed Wednesday up 11.5% at $247.06, Bank of America ( BAC ) shares closed up 8.38% at $45.39 and Wells Fargo ( WFC ) shares closed the day up 13.2% at $72.54 according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.