TradingKey - Driven by the direct and indirect effects of Trump’s economic agenda in his second term, major U.S. banks including JPMorgan Chase (JPM) and Wells Fargo (WFC) delivered better-than-expected results for Q2 2025, signaling that Wall Street is experiencing a revival — even as other sectors struggle.

On July 15, several top U.S. banks released their latest quarterly earnings, officially kicking off the Q2 bank earnings season.

JPMorgan Chase, the largest U.S. bank by assets, reported:

• Revenue of $45.68 billion, above the expected $44.06 billion
• Net income of $14.9 billion, or $5.24 per share, exceeding forecasts of $4.48 per share

Wells Fargo, the fourth-largest U.S. bank, reported:

• Net income of $5.49 billion, or $1.60 per share, up from $1.33 per share a year ago
• Adjusted EPS of $1.54, beating estimates of $1.41

Tariff Chaos = Trading Windfall

JPMorgan's strong performance was driven by its trading business boom and a partial recovery in investment banking activity.

Analysts noted that while Trump’s tariff policies have disrupted many industries, they have also created profitable volatility for Wall Street banks.

Over the past several years, public attention and capital flows gradually shifted from Wall Street to Silicon Valley, as tech giants dominated headlines and profits.

But now, with Trump’s return, Wall Street appears to be reclaiming the spotlight.

The New York Times pointed out that several large U.S. lenders posted strong quarterly earnings, with growing optimism over the resilience of the U.S. economy.

These results show that although Trump’s trade policy has created uncertainty across many sectors, in a financialized economy, uncertainty often means opportunity.

Market-Friendly Conditions: Volatility + Policy Shifts

JPMorgan CEO Jamie Dimon said the U.S. economy remains resilient, and that final passage of the “Big Beautiful Bill” tax cut package — along with potential regulatory rollbacks — would support further growth.

In early June, Wells Fargo was finally freed from a seven-year asset cap restriction, raising expectations that it could resume stronger expansion. The bank stated that it now has more room to grow than during the cap period — particularly in commercial banking, corporate lending, investment banking, and trading businesses.

Data from Goldman Sachs showed that in late June hedge funds had increased their net long positions in bank stocks to the highest level in nearly a decade, reflecting growing investor confidence in regulatory easing and Fed rate cuts.

Since the start of 2025, the KBW Bank Index has risen 13% year-to-date, and surged 31% in the last three months alone.

Among individual names, JPMorgan shares are up 20% in 2025, with Morgan Stanley and Goldman Sachs also hitting all-time highs this month.

KBW Bank Index Performance in 2025, Source: TradingView

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