Wall Street Anticipates Decade-High Trading Revenues Amidst Market Volatility in Q1 2025, Investment Banking Faces Setbacks

Wall Street traders are poised to announce their best quarter in over a decade, with estimated revenues of $34.5 billion from equities and fixed income trading across Goldman Sachs, JPMorgan Chase, Morgan Stanley, Bank of America, and Citigroup. According to Bloomberg and Visible Alpha data, this represents a 10% increase from the previous year and the highest since the start of 2014. The surge in trading activity occurred before President Trump's tariff announcements, which triggered a significant sell-off in U.S. stocks. While market volatility has boosted trading revenues, it has simultaneously hampered corporate mergers and new stock market listings. Investment banking revenue at the five banks is expected to rise 3% to $7.65 billion, but new deals are at a decade low. Morgan Stanley analysts have delayed the expected recovery of investment banking to 2028 due to market volatility. JPMorgan, Morgan Stanley, and Wells Fargo will begin reporting earnings on April 11, followed by Goldman on April 14, and Bank of America and Citi the following day. Collective profits at the six largest U.S. banks are expected to rise about 5% year-over-year, as reported by the Financial Times on March 28, 2025. Investors will also be monitoring potential increases in credit card debt losses, following a surge in borrowing post-pandemic.