Wells Fargo reports consumer growth and downgrades US tech sector

Wells Fargo is reporting strong momentum in consumer and business activity following the removal of its asset cap. Chief Financial Officer Mike Santomassimo noted that consumer spending remains strong, characterized by rising debit and credit card usage and healthy debt-to-income levels. Despite economic uncertainty, the bank has seen growth in core checking accounts, wealth management, and investment banking.

Simultaneously, the bank has adjusted its market outlook by downgrading the US technology sector from overweight to equal weight. While maintaining a constructive long-term view on AI infrastructure and software spending, the bank cited stretched valuations as a reason to trim exposure. As part of this selective approach, Wells Fargo also downgraded Accenture to equal weight following disappointing fiscal fourth-quarter earnings and geopolitical headwinds.