Overnight trading sees bank stocks rise as traders anticipate reduced regulation under a Trump administration.

• Overnight trading on brokerage Robinhood saw advancements from Citigroup, Bank of America, and Wells Fargo.
• As investors anticipate a win for Donald Trump in the presidential election, the move is made.

Overnight, the stocks of significant banks increased as investors anticipated a win for Donald Trump in the presidential election.

On Robinhood, well-known stocks experienced a 5% increase in special late trading, with some stocks adding more than 3%, and each stock popping more than 2%.

The race for the White House is ongoing as traders monitor the trickling in of results. While NBC News has projected Trump as the leader, several key states remain uncalled.

Under GOP control, bank stocks are predicted to gain from the party's stance on deregulation. TD Cowen analyst Jaret Seiberg pointed out that a reduction in Consumer Financial Protection Bureau supervision could particularly benefit finance companies.

"Seiberg advised clients to focus on what they expect from Donald Trump, who promises deregulation for financials, despite his regulators likely rolling back much of the CFPB enforcement agenda and rethinking safety and soundness changes for big banks."

Seiberg stated that trading banks can benefit from the possibility of lower capital requirements, continued credit card late fee policies, and potential assistance on crypto regulations. However, he cautioned that there is a downside risk associated with Trump's plans for tariffs and deportations, which could lead to inflation.