JPMorgan, Goldman Sachs, Bank of America and Wells Fargo all moved 2% higher or more in trading after the Federal Reserve made the decision to lift off from its long-standing policy of 0% interest rates.
As interest rates go up, banks should be able to improve their net-interest margin, or the difference between their cost of funding and lending rates.
The industry as a whole is expected to reap billions of dollars in additional revenues through interest income as interest rates start moving higher.
That has investors and analysts bullish on the financials sector.
Here are today’s gains, in chart form.