Wall Street Banks Rake In $37B from Trading Surge as Trump Policies Fuel Market Chaos
Volatility may shake the markets, but Wall Street’s trading desks have rarely been steadier. In the first quarter of 2025, the five largest US banks pulled in nearly $37B in trading revenue — their strongest performance in over a decade. The surge is fueled by President Trump’s shifting tariff policies, which have kept markets on edge and pushed clients to rapidly adjust their portfolios.
- Goldman SachsGS, JPMorgan ChaseJPM, and Morgan StanleyMS earned a combined $12B from their equities businesses alone, surpassing the pandemic’s trading boom.
- On Tuesday, Bank of AmericaBAC reported a 17% jump in equities trading to a record $2.2B, while CitigroupC experienced a 23% surge.
Storm clouds gathering: Despite the trading boom, bank executives are treading carefully. JPMorgan’s Jamie Dimon warned that earnings forecasts may “come down some more” as companies pull guidance amid tariff concerns. BlackRockBLK echoed the mood, noting “uncertainty and anxiety… are dominating client conversations,” while Wells FargoWFC is preparing for a “slower economic environment.” Citigroup’s equity team cut its S&P 500 year-end target from 6.5K to 5.8K and downgraded its outlook to neutral. Still, Citi CEO Jane Fraser maintains the US will retain its economic dominance, stating, “When all is said and done, and longstanding trade imbalances and other structural shifts are behind us, the US will still be the world’s leading economy, and the dollar will remain the reserve currency.”