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- JPMorgan gets a dealmaking boost as Wall Street recovered from tariff tumult</p>
<p>David HollerithJuly 15, 2025 at 8:15 PM</p>
<p>Second quarter earnings at JPMorgan Chase (JPM) were better than expected Tuesday, as a boost in dealmaking demonstrated how Wall Street recovered from the spring freeze that accompanied President Trump's "Liberation Day" tariffs.</p>
<p>Investment banking revenue at JPMorgan rose 8% from last year's second quarter to $2.5 billion due largely to advising on mergers and equity underwriting. Bond underwriting fell 2% but still exceeded analyst expectations.</p>
<p>JPMorgan CEO Jamie Dimon said investment banking activity "started slow but gained momentum as market sentiment improved" and "the U.S. economy remained resilient in the quarter."</p>
<p>He also offered some notes of caution, however.</p>
<p>"Significant risks persist," he added, "including from tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits and elevated asset prices."</p>
<p>JPMorgan raked in a total of $15 billion of net income over the second quarter, a 17% drop compared to the same period last year. But that drop was largely due to the fact that the comparison was skewed by a one-time gain on its Visa shares recognized in the second quarter of last year.</p>
<p>CEO of JPMorgan Chase, Jamie Dimon, on April 9. (Photo by Noam Galai/Getty Images) (Noam Galai via Getty Images)</p>
<p>Excluding that one-time gain in addition to a $774 million income tax benefit, JPMorgan's profits rose 9% in the second quarter to $14.2 billion compared with $13.1 billion in the year-ago period.</p>
<p>Three months ago, a sense of gloom hovered over the first quarter earnings season as bankers grappled with a halt in dealmaking and the market chaos that followed Trump's April 2 "Liberation Day" tariff announcement, with some warning of "considerable turbulence" and a possible recession.</p>
<p>Read more: What Trump's tariffs mean for the economy and your wallet</p>
<p>That gloom has been replaced by measured optimism in the lead-up to the start of another earnings season this week.</p>
<p>"Essentially every part of the company is firing," JPMorgan CFO Jeremy Barnum said. "We are firing on all cylinders."</p>
<p>Some red-hot IPOs and sizable mergers have helped, as have several developments in Washington, D.C., while the Trump administration begins to loosen capital and supervisory rules for big banks.</p>
<p>JPMorgan wasn't the only bank to see an investment banking boost. At Wells Fargo (WFC), fees from that work rose 10% from a year ago to $696 million. At Citigroup (C), investment banking fees also climbed 13% in the second quarter.</p>
<p>"It certainly seems like volumes are picking up," Wells Fargo CFO Mike Santomassimo told reporters.</p>
<p>Citigroup CFO Mark Mason told reporters on a separate call that "we're seeing really momentum across a multitude of sectors across the board, particularly in healthcare and tech."</p>
<p>Even the volatility triggered by Trump's tariffs turned out to be a boost for Wall Street trading desks as investors churned through their bets.</p>
<p>At JPMorgan, trading revenue rose by 8% to $8.9 billion, with both equities and fixed income markets businesses seeing jumps.</p>
<p>Revenue also rose across JPMorgan's sprawling consumer bank as well as its asset and wealth management division. However, revenue fell in its corporate unit.</p>
<p>JPMorgan raised its guidance for a key revenue source — net interest income — by $1 billion for the full year, to $95.5 billion. Excluding interest income from its markets business, it now expects to earn $92 billion, or $2 billion more in net interest income than it previously expected.</p>
<p>Wells Fargo lowered its guidance for 2025 net interest income to the previous year's $47.7 billion. Previously, management had guided for a 1% to 3% rise from last year's level. That helped push its stock down.</p>
<p>JPMorgan's stock was flat in Tuesday morning trading, while Wells Fargo fell more than 4%. Citigroup was up slightly.</p>
<p>David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is [email protected].</p>
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