Wall Street braces for earnings season amid dealmaking freeze and financial stock rout

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

Wall Street bracing for earnings season amid dealmaking freeze and financial stock rout. Big banks like JPMorgan, Wells Fargo, and Citigroup saw significant drops in anticipation of President Trump’s tariffs. US banking index plunged 15.5%, marking worst two-day performance since 2020.

Market turmoil delays IPOs for companies like StubHub, Klarna, and Chime. eToro Group Ltd, MNTN Inc., and Ategrity Specialty Holdings also pause planned listings. M&A deals on hold. Bank executives considering revising down revenue forecasts for M&A advisory businesses.

Banks face challenges amidst increased recession and inflation fears. Trump’s trade policies causing drop in long-term borrowing rates, impacting banks’ loan profits. Analysts predict banks to lower annual loan growth guidance. Positive signs include administration’s efforts to lift lender constraints and overhaul regulations.

Banks face uncertainties as earnings season begins. Trump administration’s policies and market volatility create challenges. Analysts note current rout differs from 2023 crisis. Focus on forward guidance and trade policy impact on banks’ outlook. Concerns about credit risk and potential future loan losses.

Industry optimistic at start of Trump administration now faces valuation challenges. Banks underperforming due to drop in long-term rates and recession fears. Earnings per share expected to be up 3% from last year but down 8% from Q4. First quarter results to reveal mounting uncertainty. Focus on growth and asset quality.

Banks’ stocks underperforming due to rate drop and recession fears. Earnings per share to be up 3% from last year but down 8% from Q4. First quarter results to show mounting uncertainty. Focus on growth and asset quality. Market analysis and financial news available on Yahoo Finance.

Read more: Stock rout and dealmaking freeze raises stakes for start of Wall Street’s earnings season