What's happened
Banks are reporting strong second-quarter earnings, driven by investment banking fees from the SpaceX IPO and a rebound in commercial lending. Wall Street traders are benefiting from volatility, while consumer credit remains resilient. Analysts expect JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley to report solid results.
What's behind the headline?
What this means for readers
- The big banks are riding a rare confluence of Wall Street activity and healthy Main Street credit.
- Investment banking fees from high-profile IPOs like SpaceX are boosting revenue alongside trading gains from volatility.
- Commercial lending may be turning the corner, supported by AI-driven spending and a shift in demand from private credit to traditional lenders.
Risks and questions
- Can this momentum persist into 2027 amid higher for longer rates?
- Will regional banks outperform the giants as they intensify commercial lending?
How we got here
The quarter arrives as SpaceX’s historic IPO boosted underwriting fees. Banks are also seeing higher trading revenues and rising advisory fees amid broader market activity and renewed appetite for corporate financing.
Our analysis
CNBC reports on SpaceX IPO fees and bank earnings expectations, noting analysts' forecasts for revenue and trading gains; additional context from CNBC on sector-wide trends and investor sentiment.
Go deeper
- Are these gains sustainable if interest rates stay high?
- Which bank will post the strongest trading revenue this quarter?
- How will SpaceX’s IPO influence future advisory business?
More on these topics
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Citigroup - Investment banking company
Citigroup Inc. or Citi is an American multinational investment bank and financial services corporation headquartered in New York City.
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Goldman Sachs - Investment banking company
The Goldman Sachs Group, Inc., is an American multinational investment bank and financial services company headquartered in New York City.
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JPMorgan Chase - Investment banking company
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City.
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Bank of America - Investment banking company
The Bank of America Corporation is an American multinational investment bank and financial services company headquartered in Charlotte, with central hubs in New York City, London, Hong Kong, Dallas, and Toronto.
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SpaceX - Aerospace company
Space Exploration Technologies Corp., trading as SpaceX, is an American aerospace manufacturer and space transportation services company headquartered in Hawthorne, California.
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Brian Moynihan - CEO of Bank of America
Brian Thomas Moynihan is an American businessman and the Chairman and CEO of Bank of America. He joined the Board of Directors, following his promotion to President and CEO in 2010.
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Jamie Dimon - CEO of JPMorgan Chase
Jamie Dimon is an American business executive. He is chairman and CEO of JPMorgan Chase, the largest of the big four American banks, and was previously on the board of directors of the Federal Reserve Bank of New York.
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Morgan Stanley - Investment banking company
Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.
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Wells Fargo - Financial services company
Wells Fargo & Company is an American multinational financial services company headquartered in San Francisco, California, with central offices throughout the United States.