Wall Street banks may announce their worst trading results this year this week, raising market concerns that the investment banking business continues to break records or is coming to an end. According to compiled data, analysts expect the five major US investment banks — J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Bank of America — to total stock and fixed income transaction revenue of about US$38 billion in the third quarter. Although this figure is still 13% higher than the same period last year, it is a sharp drop from the record transaction revenue of US$47 billion in the second quarter, and also down nearly 12% from the first quarter of this year. This year, the US investment banking trading sector benefited from AI-related market fluctuations, commodity price changes, and interest rate shocks. The resulting stock trading environment was described by J.P. Morgan CEO Jamie Dimon as “near optimal” last quarter. But Wall Street bankers from Bank of America, J.P. Morgan Chase, and Morgan Stanley warned in September that the benefits of such huge transactions might not be recovered. They blamed the fall in Asian financing transactions and the slowdown in fixed income, foreign exchange, and commodity transactions.

Wall Street banks may announce their worst trading results this year this week, raising market concerns that the investment banking business continues to break records or is coming to an end. According to compiled data, analysts expect the five major US investment banks — J.P. Morgan Chase, Goldman Sachs, Morgan Stanley, Citigroup and Bank of America — to total stock and fixed income transaction revenue of about US$38 billion in the third quarter. Although this figure is still 13% higher than the same period last year, it is a sharp drop from the record transaction revenue of US$47 billion in the second quarter, and also down nearly 12% from the first quarter of this year. This year, the US investment banking trading sector benefited from AI-related market fluctuations, commodity price changes, and interest rate shocks. The resulting stock trading environment was described by J.P. Morgan CEO Jamie Dimon as “near optimal” last quarter. But Wall Street bankers from Bank of America, J.P. Morgan Chase, and Morgan Stanley warned in September that the benefits of such huge transactions might not be recovered. They blamed the fall in Asian financing transactions and the slowdown in fixed income, foreign exchange, and commodity transactions.