On September 15, Wells Fargo fell 3.05% in regular trading, trading at $87.48/share, with turnover of $6.34 billion. The decline came amid a broad selloff across the diversified banking sector as markets increasingly priced in a Federal Reserve rate hike at its meeting this week.

The banking sector saw widespread losses, with Bank of America down 5.3%, Citigroup down 4.22%, JPMorgan Chase down 2.19%, and Morgan Stanley also sliding over 2%. According to CME Fed Watch data, the probability of a cumulative 25-basis-point rate hike at the September meeting had climbed to 60.2%, while Wells Fargo analysts previously noted the Fed historically acts when market-implied probability exceeds 69%. A Wells Fargo wealth management executive stated that August core CPI data reinforced the case for a hike, adding that a decision to hold rates steady would itself be a surprise.

While Wells Fargo reported strong Q2 results with revenue of $22.6 billion and net income of $6.41 billion — up 9% and 17% year-over-year respectively — and its CEO expressed being extremely bullish on the U.S. outlook, near-term rate hike expectations weighed on bank valuations and suppressed sector sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)