Wall Street banks saw record equities trading revenue in first quarter under Trump

From CNBC: 2025-04-16 11:30:00

President Donald Trump met with El Salvador President Nayib Bukele at the White House. Wall Street banks saw record equities trading revenue in the first quarter under Trump’s presidency. The six largest U.S. banks earned $16.3 billion from stock trading, with analysts calling the performance “spectacular” and “extraordinary.” Equities traders saw the biggest gains, with fixed income personnel also experiencing higher revenue.

Trump’s second term was expected to benefit Wall Street dealmakers, but trading floors have seen the most gains so far. As deal activity remains low, professional investors are actively seeking gains through trading. Booming trading results will help big banks prepare for potential loan losses as the economy weakens. Regional banks without large trading operations face challenges amid stagnant loan growth.

The first quarter was busy for trading with investors positioning themselves for Trump’s trade policies. Trump’s tariff announcements on imports caused significant market moves, creating chaos in equities and government bonds. Wall Street giants are expected to have a more profitable second quarter as trading activity remains high. Trading desks have evolved since the 2008 financial crisis, providing faster execution and larger credit lines to professional investors worldwide.

Goldman CEO David Solomon noted significant moves in equity markets in March due to changing trade policies under Trump. The second quarter is performing well for businesses and clients are active in trading. Wall Street trading desks now focus on facilitating trades and providing leverage for clients, rather than making bets with house money. Morgan Stanley CEO Ted Pick emphasized the orderly market-making despite concerns about the real economy.

Read more: Wall Street trading revenue boosted by Trump policy volatility