Key facts
- JPMorgan Chase reported its first profit miss since Q4 2023.
- Bank of America missed profit estimates.
- Dealmaking and IPOs were delayed due to market volatility and rising yields.
- Equity trading desks saw a surge in activity, while fixed-income trading underperformed.
- Net interest income rose, supported by a September Fed rate hike.
Quarterly results from major Wall Street banks revealed their vulnerability to fluctuations in capital markets, even after a strong first half of 2026. Dealmaking slowed significantly in the third quarter, impacting investment banking revenues. Rising bond yields, concerns over the AI trade, and geopolitical uncertainties contributed to a cautious environment, delaying anticipated M&A and IPO activity. JPMorgan Chase reported its first profit miss since late 2023, and Bank of America also missed market expectations. While four other top banks exceeded profit forecasts, their stock performance was subdued as investors perceived the beats to be smaller than in prior periods. Trading desks showed a divergence, with equity divisions benefiting from increased market activity, while fixed-income desks underperformed. Consumer banking remained a steady engine, with net interest income rising, bolstered by a September Federal Reserve rate hike and resilient consumer spending and borrowing.