Major Wall Street banks expect trading revenue to slow in the third quarter from a record-breaking second quarter, fueled by frenzied trading in AI-related stocks. Their forecasts vary widely, pointing to divergent performance across the sector.
Bank of America CEO Brian Moynihan projected sales and trading revenue would be roughly flat compared with the prior year. The bank’s shares fell after the forecast.
JPMorgan expects markets and investment banking revenue to rise by a mid-to-high-teens percentage. Citigroup projected a modest mid-single-digit increase for its markets unit.
Combined equities trading revenue at four major banks surged 72% year on year in the second quarter.