Here are 3 ways to ignite a rally in beaten-down bank stocks like Wells Fargo and Goldman
Why it matters: A potential rally in bank stocks like Goldman Sachs and Wells Fargo could reverse Q1's 9.8% sector slide.
- Bank stocks were battered in Q1 2026, with Goldman Sachs (GS) down 13% and Wells Fargo down 17% from their January highs, underperforming the S&P 500's 3.45% decline.
- Jim Cramer suggests banks are a 'good group for the next quarter' due to their current low valuations, despite concerns over private credit, AI disruption, and the U.S.-Iran war.
- A resolution to the U.S.-Iran conflict is seen as a primary driver for a rally, as it would reduce economic uncertainty and encourage dealmaking, benefiting Goldman's investment banking and Wells Fargo's capital markets.
- Anticipated IPOs from companies like OpenAI, which recently closed a $122 billion funding round at an $852 billion valuation, and SpaceX, which has confidentially filed for an IPO, are expected to boost bank revenues from underwriting and advisory fees.
After a challenging first quarter in 2026 where the S&P 500 financials sector slid 9.8%, bank stocks like Goldman Sachs and Wells Fargo are poised for a rally, according to Jim Cramer. Three key catalysts could ignite this turnaround: a resolution to the U.S.-Iran conflict, a surge in Wall Street dealmaking driven by a more stable economic outlook, and anticipated monster IPOs from companies like OpenAI and SpaceX.
