U.S. Bank Stocks Gain $600 Billion in 2025 as Trading and Lending Rules Ease

The six largest U.S. banks have gained $600 billion in market value so far in 2025. This rebound follows efforts from the Trump administration to ease financial rules and boost bank profits. At the same time, a comeback in investment banking is helping results.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential As of this week, the total market cap of JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS), and Morgan Stanley (MS) reached $2.37 trillion. That is up from $1.77 trillion at the start of the year. By contrast, the top six European banks combined are valued at just $1 trillion. Policy Shift Sparks Gains For years, stricter rules implemented after the 2008 crisis kept investors cautious. But now, regulators are shifting course. New proposals would allow the largest banks to use more leverage, ease stress-test rules, and loosen loan guidance. Analysts say these changes raise returns and lower capital costs. Banks are also expecting softer final rules for global capital standards, known as Basel III Endgame. Earlier plans under the Biden administration would have been stricter. However, now, the outlook points to more room for banks to deploy capital into lending, buybacks, and dividends. Strong Stock Gains Across the Board Citigroup is leading the pack with an over 70% gain in 2025. A long-term cost-cutting effort is now paying off, and the stock recently traded above its sum-of-the-parts value for the first time since 2018. Goldman Sachs is up over 60%, lifted by a strong rebound in deal-making and trading. Bankers say investment banking activity is still rising, and 2026 could bring more growth. Trading revenue from both equities and fixed income is also heading for new highs. Industry estimates project $92 billion in equities trading revenue and $163 billion in fixed income for the year. Overall, the banking sector is on pace to beat the S&P 500 (SPY) for a second straight year. What to Watch Next For now, banks are benefiting from lighter regulations and robust capital markets. Still, some observers, including lawmakers, warn that excessive deregulation could increase long-term risks. Analysts note that much of the good news may already be priced in. However, with capital still strong and business trends firm, many investors are staying bullish. We used TipRanks' Comparison Tool to compare all six banks. It's a great way to gain an in-depth look at each stock and the broader banking industry.