STORY: SpaceX’s record IPO was among the mega-share sales helping bank earnings blast off in the second quarter.
That deal alone generated some $500 million in fees for Wall Street’s top names.
Earnings out Tuesday confirmed it had been a stellar quarter.
Among the headline numbers…
JPMorgan said big-ticket IPOs and dealmaking helped drive investment banking fees to their highest since 2021.
It posted a quarterly profit of just over $21 billion – the highest ever for a U.S. bank.
Citigroup reported a 45% jump in second-quarter profit, and its highest quarterly revenue in a decade.
Goldman Sachs, Wells Fargo and Bank of America also all beat expectations.
SpaceX was far from the only deal to provide a boost.
The period also saw major share sales by Google-parent Alphabet and chip designer Cerebras.
And lenders were further lifted by volatile markets that spurred strong trading.
Uncertainty over AI and conflict in the Middle East both kept investors active.
Overall, most analysts said they were surprised by just how much the banks beat forecasts.
But there is some caution over the months ahead.
Wealth Alliance Chief Executive Robert Conzo says one worry is what the gulf between investors and everyday Americans will mean for the economy:
“People that are involved in the stock market doing well. Borrowing affects them less than lower-income people, where you are starting to see – lower and middle income people – inflation is real, gas prices are real, and borrowing costs are real.”
On Tuesday, JPMorgan chief Jamie Dimon listed global conflict, inflation and sky-high asset prices as among the factors that could spark disruption.
