Bank stocks surged in morning trading after major banks reported strong earnings. Goldman Sachs rose 8%; Morgan Stanley and UBS rose 4%; JPMorgan Chase rose 3%; Deutsche Bank, Barclays, Bank of America, and Citigroup rose 2%.
JPMorgan Chase reported a record second-quarter profit on Tuesday, as a wave of big-ticket IPOs and dealmaking helped drive investment banking fees to their highest levels since 2021, while its trading desk capitalized on volatile markets.
Bank of America exceeded Wall Street estimates for second-quarter profit on Tuesday, as global market chaos fueled record trading, while a corporate dealmaking surge spurred investment banking. The bank also expects full-year 2026 net interest income to grow at the upper end of its previously forecast range of 6% to 8%, finance chief Alastair Borthwick said.
Goldman Sachs exceeded second-quarter profit expectations, as dealmaking picked up pace and market volatility due to the Middle East war boosted the equities business to a record.
Citigroup beat Wall Street estimates for second-quarter profit after reporting its highest quarterly revenue in a decade on Tuesday, as the bank benefited from robust trading income in a volatile market and strong investment banking fees.
Wells Fargo beat Wall Street estimates for quarterly profit, boosted by strong investment banking fees and as it doled out more loans after its regulatory shackles were removed last year.
