Wells Fargo (NYSE:WFC) experienced a significant 24-hour plunge of 5.55% in pre-market trading, as investors brace for the upcoming earnings call scheduled for April 11. The sharp decline comes amidst growing concerns about the banking sector's outlook and analyst predictions of a cautious tone from major U.S. banks.

According to BofA Securities, Wells Fargo and other big banks are likely to strike a cautious tone during their earnings calls, focusing on risks associated with policy uncertainties such as tariffs and the Department of Government Efficiency (DOGE). While major credit issues are not expected immediately, there are indications that banks may increase their reserves due to growing economic concerns. This cautious approach could be contributing to the negative sentiment surrounding Wells Fargo's stock.

The upcoming earnings calls are expected to provide crucial insights into consumer and corporate strength, particularly in investment banking and lending. Investors will be closely watching for signs of whether economic conditions will improve in the second half of 2025 or continue to deteriorate. Adding to the pressure on Wells Fargo, BofA Securities has revised its price target for the bank from $85 to $83, reflecting a more conservative outlook. As the financial sector braces for potential challenges, Wells Fargo's significant stock decline may be a reflection of investor anxiety ahead of the critical earnings announcement.