Bank stocks soared after former President Donald Trump secured a second term in the White House. The Financial Select Sector SPDR Fund (XLF) rose more than 6% in intraday trading on Wednesday, with names like JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC) and Goldman Sachs (GS) gaining . KBW Managing Director David Konrad joins Josh Lipton on Asking for a Trend to discuss why Trump’s victory has boosted the sector and what bank investors expect from his second term.

Konrad says, “There are three main factors, all kinds of deregulation to some degree,” that have driven bank stocks higher: fewer antitrust regulations leading to more mergers, lower capital restrictions and less pressure from the Consumer Financial Protection Bureau (CFPB ). Consumer fees.

“The other factor might be a little bit of concern about the inflationary impact of the Trump administration, and so people are looking for more asset-sensitive names over a period of time, and those are really the real outperformers.” we saw it today.

Watch the video above to learn more about Konrad’s expectations for the banking sector under Trump.

For more expert insights and analysis on the latest market activity, check out the Asking for a Trend article here.

This post was written by Naomi Buchanan.