Financial institutions on Wall Street reap benefits amidst economic turbulence triggered by Donald Trump's trade disputes.
In the tumultuous economic landscape of Donald Trump's tariff wars, Wall Street's major banks, including Goldman Sachs, Morgan Stanley, and Bank of America, have found a silver lining. The volatile markets have, in fact, boosted their trading revenues.
Goldman Sachs, in particular, reported a significant surge in revenue from trading activities during periods of market volatility. In 2025, the bank exceeded revenue estimates by over £1 billion, with £600 million coming from its trading desks. This led to a net income increase of 22% to £4.72 billion.
The bank's equity trading reached a record high, driven by market volatility. This boosted its stock trading performance, including a record £4.3 billion in stock trading during one quarter amid Trump's trade war-related volatility.
Morgan Stanley and Bank of America also reported strong earnings, with trading activities contributing significantly to their performance. Their ability to capitalize on market volatility helped them exceed earnings per share expectations.
The tariffs imposed by the Trump administration led to significant market volatility, with global markets experiencing sharp declines and subsequent recoveries. This environment allowed banks with strong trading arms to capitalize on the increased activity and uncertainty.
Despite the second quarter not being particularly tumultuous for Goldman Sachs, the bank still managed to post impressive results. Its profits increased by more than a fifth, reaching £2.8 billion. Morgan Stanley's income rose by 15% in the same quarter, amounting to £2.6 billion.
The markets did tumble on the back of Trump's trade war but rebounded, providing opportunities for the banks' traders to make gains. The performance of traders at Goldman Sachs, Morgan Stanley, and Bank of America improved during the market rebound.
However, it's worth noting that the increase in Bank of America's profits was driven by the tumultuous markets, while Morgan Stanley's income increase was due to wealthy clients buying during market dips.
This article does not provide information about any affiliate links related to investing accounts. It is intended to provide factual information about the performance of these major banks during the volatile period of Trump's tariff wars.
Investing in the stock market, specifically with banks such as Goldman Sachs, Morgan Stanley, and Bank of America, proved beneficial during Donald Trump's tariff wars due to the increased trading revenues resulting from market volatility. Goldman Sachs, for instance, saw a surge in revenue from trading activities, reporting a net income increase of 22% in 2025, with £600 million attributable to its trading desks.
