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Wall Street Banks Report Record Trading Revenues in Volatile Markets

Major U.S. investment banks are profiting from tariff-driven market swings, while other banking operations face challenges from economic uncertainty.

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Overview

  • Investment banks like Goldman Sachs, JPMorgan Chase, and Morgan Stanley reported record trading revenues in Q1 2025, with Morgan Stanley achieving $17.74 billion in revenue, a 45% increase.
  • Market volatility caused by President Trump's tariff announcements and trade policy uncertainties has driven up trading activity, benefiting banks' trading desks.
  • Banks are capitalizing on wider bid-ask spreads and increased transaction volumes, turning unpredictable market movements into significant profits.
  • Other banking segments, including IPOs, mergers, and advisory services, are slowing down as companies delay decisions due to economic instability.
  • Goldman Sachs CEO David Solomon has called for clearer trade policies from the Trump administration to stabilize the investment climate and foster long-term growth.