Major U.S. banks struck a cautiously optimistic tone on Tuesday as second-quarter earnings revealed a rebound in dealmaking activity, despite ongoing trade uncertainty.
JPMorgan Chase, Citigroup, and Wells Fargo all beat profit expectations as advisory fees and debt underwriting picked up. JPMorgan’s investment banking revenue rose 7% to $2.5 billion, defying earlier forecasts of a decline. Citigroup saw a 15% jump to $981 million, lifted by a revival in mergers and IPOs. Wells Fargo posted an 8% increase to $463 million.
“Despite a rocky start to the quarter, sentiment improved as it progressed,” said KPMG’s Peter Torrente.
CFOs from the top banks said momentum appears to be building across sectors like healthcare and tech, but they remain cautious amid persistent global uncertainty and the threat of new tariffs.
Executives also expressed hope for lighter regulatory burdens under the Trump administration and cited strong stress test results as a sign of stability.
Bank of America, Goldman Sachs, and Morgan Stanley are due to report Wednesday. For now, Wall Street appears to be regaining its footing in investment banking—a bright spot in an otherwise uncertain economic landscape.
