Wall Street banks reported some of their highest profits ever in the last quarter, boosted by a surge in deal making and rising stock prices. JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs all posted strong earnings, with JPMorgan seeing a 12% increase in profits to $14.39 billion.

Despite the positive results, bank executives expressed caution due to concerns about overinflated asset prices and geopolitical uncertainty. Jamie Dimon of JPMorgan warned of risks posed by complex geopolitical conditions, tariffs, and elevated asset prices, despite the overall resilience of the U.S. economy.

JPMorgan’s consumer banking division had a standout quarter, driven in part by its credit card business. The bank saw increased consumer spending and borrowing, particularly on high-fee cards like the Chase Sapphire Reserve. Wall Street is also experiencing a resurgence in deal making, with numerous major companies going public and raising significant funds.

Goldman Sachs reported a 42% increase in investment banking revenues, driven by a surge in M&A deals. Citigroup and JPMorgan also saw substantial growth in investment banking and corporate lending revenues. However, despite the strong market performance, executives remain cautious about the sustainability of the current boom amid uncertainty surrounding tariffs and inflation.

Executives like Mark Mason of Citigroup highlighted ongoing uncertainties around tariffs, inflation, and the labor market. The U.S. and China trade war continues to impact the global economy, with gold and silver prices hitting record highs and essential goods like steel and soybeans caught in the crossfire. Despite strong earnings, concerns about the longevity of Wall Street’s success persist.

Read more at Yahoo Finance: Wall Street sees major jump in profits, helped by soaring stock prices and deal making