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2026-09-17 20:12:09
[Wall Street Investment Banks Warn: Second Quarter Boom in Trading Profits Unlikely to Reappear, Bank Markets Business May Cool Down] (1) Wall Street investment banks are warning that the boom in trading profits that significantly boosted profits in the second quarter is unlikely to be repeated, indicating that the boom in the banking market business may be starting to cool down. (2) Executives at major U.S. banks said at an industry conference this week that trading revenue growth has slowed after record performance in the previous quarter. During the second quarter, the trading boom in AI-related stocks drove bank profits to record highs. (3) Bank of America CEO Brian Moynihan said on Monday that the bank’s sales and trading revenue will be flat in the third quarter. The statement caused its stock price to fall by 5% that day and dragged down the stock prices of its peers. (4) Morgan Stanley co-president Daniel Simkowitz said: “The market conditions in the second quarter of this year were quite special. It is safe to say that the third quarter will not replicate the boom of the second quarter.” (5) JPMorgan Chase co-president Doug Petner said that after a record quarter, the bank’s market revenue is expected to see a seasonal decline.
