GRAPHIC — Wall St banks caught in capital markets lull after a strong first half of 2026
By Manya Saini Oct 15 (Reuters) — Quarterly results from Wall Street's big banks this week showedthat even the largest and most robust players of the industry can be vulnerable to the ebb and flow of capital markets. Dealmaking, a cyclical business, slowed in the third quarter and dented investment banking, as rising bond yields, choppy AI trade and geopolitical worries gave jitters to investors and corporate boardrooms alike,further delaying a long-awaited revival in M&As and IPOs. Here is an overview of results from the six top US banks in charts, which kicked off the third-quarter earnings season for US companies: Two Misses, Little Market Cheer JPMorgan Chase posted its first profit miss since the fourth quarter of 2023, The other four top US banks exceeded expectations, but their stocks traded lower or did not react as investors judged the earnings beats to be smaller than in previous quarters. Dealmaking Stalls Dealmakers were looking forward to a bumper year, but momentum has stalled since the summer as market volatility, geopolitical turmoil, rising Treasury yields and conce
By Manya Saini Oct 15 (Reuters) — Quarterly results from Wall Street's big banks this week showedthat even the largest and most robust players of the industry can be vulnerable to the ebb and flow of capital markets. Dealmaking, a cyclical business, slowed in the third quarter and dented investment banking, as rising bond yields, choppy AI trade and geopolitical worries gave jitters to investors and corporate boardrooms alike,further delaying a long-awaited revival in M&As and IPOs.
Here is an overview of results from the six top US banks in charts, which kicked off the third-quarter earnings season for US companies: Two Misses, Little Market Cheer JPMorgan Chase posted its first profit miss since the fourth quarter of 2023, The other four top US banks exceeded expectations, but their stocks traded lower or did not react as investors judged the earnings beats to be smaller than in previous quarters.
Dealmaking Stalls Dealmakers were looking forward to a bumper year, but momentum has stalled since the summer as market volatility, geopolitical turmoil, rising Treasury yields and concerns over the sustainability of the AI trade kept companies on the sidelines. Growth in investment banking fees slowed sharply compared to the prior quarter as an interest-rate hike and delays to several high-profile IPOs hit sentiment, even though executives reassured investors that they have not been canceled.
Equity And Fixed-income Desks Diverge The quarterly results revealed a sharp divide in trading performance at big banks: equity desks benefited from a surge in market activity, while fixed-income underperformed. Market volatility typically boosts trading businesses as clients reposition portfolios and hedge against risks. Consumer Banking: A Steady Engine Net interest income, the difference between what banks earn on loans and pay out on deposits, rose, with analysts expecting further support from the Federal Reserve's September rate hike.
Banking executives pointed to resilient consumer spending and borrowing, easing concerns that sticky inflation and elevated rates would strain household budgets. In a bright spot, loan demand also continued to chug along. S. com; X: manya__saini;)