Large U.S. banks are optimistic about investment banking after a rebound in deals in Q2. JPMorgan Chase, Citigroup, and Wells Fargo exceeded profit expectations due to a resilient U.S. economy despite trade policy uncertainties.

JPMorgan’s investment banking fees exceeded expectations, growing by 7% to $2.5 billion. Citigroup reported a 15% increase in investment banking revenues to $981 million, buoyed by M&A momentum. Wells Fargo saw an 8% uptick in investment banking revenue to $463 million.

Bank of America, Goldman Sachs, and Morgan Stanley will report results next. Despite a slowdown in M&A activity in April due to tariffs, optimism is increasing among U.S. stock investors. Bankers anticipate a revival of stalled deals in the second half of the year.

Citigroup CFO Mark Mason noted an improved sentiment among investors, with growing momentum in healthcare and tech sectors. Bankers expect a strong pipeline for North American activity with financial sponsors. While optimism is increasing, caution remains among industry executives.

Industry executives are hopeful for lighter regulations under Trump. Banks performed well in the Federal Reserve’s stress test, showing they have enough capital to withstand adverse scenarios. Investors are recognizing the strength of the U.S. economy, reflecting positively in the stock market.

Read more at Yahoo Finance: US banking giants reap gains from dealmaking rebound