US President Donald Trump meets with El Salvador President Nayib Bukele (not shown) in the Oval Office of the White House in Washington, DC, USA, April 14, 2025.
Kevin Lamarque | Reuters
The Wall Street banks have just recorded their biggest train from stock trading, since President Donald Trump's opening months of the term of office in all financial classes-and the need for institutional investors around the world to position themselves for a new regime.
Goldman SachsPresent Morgan StanleyPresent JPmorgan Chase And Bank of America Every record shares that act for revenue in the first quarter, with the first three income of around 4 billion US dollars each.
When included Citigroup And Wells FargoThe six largest US banks put on a stock trading in the amount of $ 16.3 billion in the quarter, 33% more than a year earlier and higher than in previous tumult period such as the Coronavirus Pandemy 2020 or the global financial crisis in 2008.
The performance that every bank helped to exceed with the exception of Wells Fargo to exceed the expectations for the quarter was classified by analysts last week by analysts in conference calls as “spectacular”, “extraordinary” and “awesome”.
It is a turn of the expected Trump boom for Wall Street.
Trump's second time in office should be good for Wall Street's dealmakers, the investment bankers, the billion dollar acquisitions and top-class IPO listings. Instead, the activity of the deal has remained loud, and the largest beneficiaries to date on the bank's trade floors.
While stock dealers made the greatest profits in the first quarter, the fixed income staff also recorded higher income in relation to rising activities in currencies, raw materials and bond markets.
“As long as the volatility continues – and there is no reason to assume that it will stop soon – should stock traders stay busy,” said James Shanahan, a bank analyst at Edward Jones, in a telephone interview.
While investment banking is steamed as a company leader in terms of continuing uncertainty strategic decisions, professional investors have “playing a lot” to make profits, said Ted Pick, CEO of Morgan Stanley, on Friday.
The booming trading results will help large banks if they potentially put aside billions of dollars for acidic loans if the economy continues to weaken, said Shanahan. According to JPMorgan executives, it is assumed on Friday that their models assume that the US unemployment will later increase to 5.8% this year. Unemployment was 4.2%in March, according to the Ministry of Labor.
The environment leaves regional banks, which usually do not have considerable trading transactions in a “difficult place” in the middle of stagnating loan growth and increased borrower failure, added Shanahan.
“Significant movements”
The first quarter is usually a busy trade as investors from Hedge Fund, pensions and other active managers who restart their performance cycles.
This applies especially to this year; Hours after his swearing in January, Trump said that he would soon implement tariffs for imports from Canada and Mexico. The next month he started the trade voltages with China and at the same time targeted certain industries and products such as automobiles and steel.
The dynamics in which Trump presented, and then remained, he achieved extensive tariffs with profound effects on American corporate beginnings in April in order to find his so -called “liberation day” announcements. At that time, the markets started to take historical steps because both stocks and government bonds whip in chaos.
The increased level of activity could mean that the second quarter for the giants of Wall Street is even more profitable than the first.
“We have obviously seen significant steps on stock markets as people who were positioned in March for a different kind of trade policy”, which “led to higher activities for us in different ways,” said David Solomon, CEO of Goldman, on Monday to the analysts.
So far, “the business works very well in the second quarter and customers are very active,” said Solomon.
Wall Street has developed since the 2008 financial crisis, which consolidated the commercial and investment banking among fewer companies after Lehman Brothers and Bear Stearns were wiped out.
Under the direction of people, including Morgan Stanley's election, who attributed the revision of the company's fixed incomes business and overtook his stock franchise to new heights before becoming CEO last year, Wall Street offer professional investors all over the world.
Instead of bet on the household for bets, they have leaned more on the facilitation of trades and the provision of leverage for customers, which means that they benefit from activities, regardless of whether the markets are increasing or decreasing.
“We worked with customers continuously,” said Pick on Friday. “With all the concerns about what could go on the way in real economics, market make -up and the ability to make customers when they have their leverage values were very neat.”
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