Stocks endured a wild ride in the second quarter. It was great news for big banks. Jake ConleyJuly 16, 2025 at 10:12 PM The second quarter of 2025 was a great time to be a stock trader at one of the country's major banks.
- - - Stocks endured a wild ride in the second quarter. It was great news for big banks.
Jake ConleyJuly 16, 2025 at 10:12 PM
The second quarter of 2025 was a great time to be a stock trader at one of the country's major banks.
The equities trading desks of all five of the "bulge bracket" banks — JPMorgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS), Citigroup (C), and Bank of America (BAC) — posted double-digit growth compared to the second quarter of 2024 as traders reveled in the whipsaw volatility sparked by Trump's trade fight that escalated in April.
At Goldman Sachs, $4.3 billion worth of business for its trading group was enough to break the Wall Street record for stock trading revenues in a single quarter. This marked a 36% jump from the same quarter last year.
Morgan Stanley attributed its 23% rise in net equities revenues in part to "higher client activity," while Bank of America put its 10% growth down to performance and "increased client activity."
On Citi's Tuesday earnings call, bank CEO Jane Fraser said, "In markets, investments in our trading platforms have allowed us to handle record volumes with ease."
A screen displays the the company logo for Goldman Sachs on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 7, 2025. REUTERS/Brendan McDermid/File Photo (Reuters / Reuters)
The fortunes of investment banks' equities desks, which buy and sell stocks or stock-related products for the bank's clients, are typically tied to volatility rather than whether stocks are going up or down.
Between President Trump's "Liberation Day" tariffs, the subsequent tariff rollbacks and rollouts, the Israel-Iran conflict, and myriad other market-moving events, the S&P 500 recorded some of its biggest one- and two-day swings on record during the quarter.
Read more: What Trump's tariffs mean for the economy and your wallet
The CBOE Volatility Index (^VIX), a measure of implied market volatility often referred to as the "fear gauge," hit its highest levels since the throes of the COVID-19 pandemic in April. The VIX has since traded back to levels that prevailed before "Liberation Day" uncertainty shook stocks.
Asked on JPMorgan's Tuesday earnings call how much of the bank's trading performance could be chalked up to a strong and conducive environment, CEO Jamie Dimon said, "I was not surprised" by the market conditions.
Robinhood (HOOD) stock has also surged in recent months, rising more than 160% in 2025, as the retail trading giant has benefited from these volatile market conditions along with the Trump administration's embrace of the crypto industry, a key source of business for the platform. Robinhood is set to report earnings after the market close on July 30.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
Source: "AOL Money"
Source: Astro Blog
Read More >> Full Article on Source: Astro Blog
#LALifestyle #USCelebrities