Shares of Interactive Brokers Group Inc. (IBKR) surged over 10% on Wednesday, as the brokerage firm was swept up in a broader rally of financial stocks following Donald Trump's victory in the 2024 presidential election.
Investors are anticipating a more business-friendly environment and lighter regulatory touch under a second Trump administration, compared to the Biden administration's stricter stance on Wall Street. Among the potential changes, Trump has signaled rolling back the Department of Labor's fiduciary rule, which imposed expanded obligations on financial advisors and was criticized by the wealth management industry as overly burdensome.
Wealth managers and brokers like Interactive Brokers are also expected to benefit from Trump's pro-business approach, which could lead to increased capital expenditures, investments, and a more favorable corporate tax regime. Additionally, the industry is bracing for a potential uptick in mergers and acquisitions activity, providing a boost to investment banking operations.
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