Shares of major U.S. banks, such as Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc., saw a significant increase in premarket trading. This rise is due to investor optimism about potential tax cuts and regulatory rollbacks under the Trump administration.

Donald Trump promised to lower the corporate tax rate from 21% to as low as 15% during his campaign and proposed a plan to eliminate ten regulations for every new one introduced. These promises have created a more positive outlook for the banking sector compared to his opponent, Kamala Harris, who planned to raise corporate taxes.

The expected changes in fiscal policy and regulation are viewed as a catalyst for growth in the financial industry, leading to a positive response from investors.