From Yahoo Finance: 2025-04-05 07:55:00

The start of Wall Street’s earnings season is in jeopardy due to a dealmaking freeze and a major financial stocks rout following President Trump’s new tariffs. Big banks like JPMorgan Chase, Wells Fargo, and Citigroup fell between 13% and 18% this week. An index tracking the US banking industry plunged 15.5% on Thursday and Friday, its worst two-day performance since March 2020. The turmoil led to StubHub and Klarna postponing their IPOs, while eToro Group Ltd and other companies paused their planned listings. Bank executives are considering revising down revenue for their M&A advisory businesses amid uncertainties surrounding trade policies. Market watchers predict increased odds of a US recession and rising inflation, posing challenges for banks and customers. Despite the chaos, there are positive signs for banks if regulatory constraints are lifted and trading volatility benefits their trading desks. Analysts note that this current rout differs from the one in 2023 and will be closely watched when JPMorgan, Wells Fargo, and Morgan Stanley report their earnings results. Focus will be on forward guidance and how trade policies may impact their outlook. KBW expects the industry’s earnings per share to be up 3% from last year but down 8% from the fourth quarter. The first quarter results are expected to show signs of mounting uncertainty for banks.



Read more at Yahoo Finance: Stock rout and dealmaking freeze raise stakes for start of Wall Street’s earnings season