In the second quarter, Goldman Sachs saw a 22% increase in earnings to $3.7 billion, surpassing analyst expectations. Trading revenue surged, with equities trading up 36%, the best in the company’s history, thanks to volatility from Trump’s tariffs. Investment banking fees also rose by 26% due to increased dealmaking.

JPMorgan Chase and Citigroup also reported higher dealmaking and trading revenue. Bank of America had mixed results, with trading revenue up but investment banking revenue down. Total profits were up 3%, exceeding analyst forecasts. Three months ago, there was concern over market chaos due to Trump’s tariffs, but optimism has replaced gloom with some red-hot IPOs and mergers boosting the industry.

JPMorgan CEO Jamie Dimon noted that investment banking activity picked up momentum as market sentiment improved. Citigroup CFO Mark Mason admitted surprise at the positive quarter. Big banks like Goldman Sachs, JPMorgan Chase, Citigroup, and Bank of America have seen a recovery in profits and trading revenue, defying earlier concerns of market chaos and recession.

Read more at Yahoo Finance: Trading and dealmaking boosted Goldman profits as Wall Street overcame Trump tariff chaos