Here's Why Bank of America, PNC, and Wells Fargo Stock Surged Last Month
December was a huge month for major bank stocks, with Bank of America (NYSE: BAC) and Wells Fargo (NYSE: WFC) both gaining 10.4%, and PNC (NYSE: PNC) charging 15.6% higher, according to data provided by S&P Global Market Intelligence.
The banking sector was lifted by the Federal Reserve's commentary following its Open Market Committee meeting on Dec. 13. The central bank had a more dovish tone than anticipated, openly suggesting that a shift away from restrictive monetary policy could be around the corner. The commentary fueled optimism that interest rates will be cut next year.
The banks' big price moves were rapid and highly correlated with one another, so it's clear that the stocks were responding to the same macroeconomic news rather than anything company specific.
Source Fool.com
