David Miller, co-founder and chief investment officer of Catalyst Capital Advisors, analyzes ‘strong earnings growth’ and more as markets recover due to easing trade tensions over ‘making money’.
JPMorgan Chase raised its annual forecast for net interest income on Tuesday, after strong performance in its trading and investment banking businesses helped it beat third-quarter profit expectations.
Economic resilience despite tariff war risks and hopes for lower U.S. interest rates have spurred companies to strike big deals and consider stock offerings, increasing investment bank activity on Wall Street as traders expect an even stronger 2026.
“Although there have been some signs of slowing, particularly in terms of job growth, the U.S. economy has remained resilient overall,” CEO Jamie Dimon said in a statement.
Jamie Dimon, CEO of JPMorgan Chase. (Aaron Schwartz/Xinhua via Getty Images)
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“However, there continues to be a heightened degree of uncertainty arising from complex geopolitical conditions, tariff and trade uncertainties, high asset prices and the risk of persistent inflation,” it added.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 302.14 | -5.99 |
-1.94% |
The bank’s traders benefited from portfolio repositioning carried out by their clients as stock markets reached record highs during the quarter.
Revenue in the markets division, which includes both equity and fixed-income trading, rose 25% to $8.9 billion, a record third quarter, far surpassing an earlier estimate.
So boost
Big banks such as JPMorgan Chase and Bank of America can help take the pulse of the U.S. economy by providing insight into consumer spending, borrowing and business activity.
Net interest income, or the difference between what banks earn on their loans and what they pay on their deposits, continues to support the sector’s profits.
The JPMorgan Chase Tower on Park Avenue in midtown Manhattan. (Tim Clayton/Corbis via Getty Images)
JPMorgan revised its interest income forecast for the year. It now expects NII of around $95.8 billion for 2025, up from an earlier estimate of $95.5 billion. It also raised its forecasts in July.
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Analysts on average expected $95.4 billion, according to estimates compiled by LSEG.
Industry executives said consumers remain in good financial health, helped by a strong job market and rising wages. This has also resulted in regular debt repayments and a constant demand for new loans.
At JPMorgan, NII increased 2% in the third quarter to $24.1 billion. Meanwhile, for the fourth quarter, it expects its interest income to be $23.5 billion, excluding markets.
It expects interest income, excluding markets, of $95 billion in 2026, driven by balance sheet growth and partially offset by the impact of falling rates.
It reported earnings of $5.07 per share for the latest quarter, significantly beating analysts’ estimates of $4.84 per share.
Rival Wells Fargo also beat Wall Street’s third-quarter profit estimates on Tuesday.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| BAC | BANK OF AMERICA CORP. | 50.06 | +1.23 |
+2.52% |
| WFC | WELLS FARGO & CO. | 84.58 | +5.68 |
+7.21% |
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Business-to-business deals have rebounded strongly this year after a brief slowdown in April as companies sought to take advantage of a booming stock market.
Investment banking fees at JPMorgan rose 16% in the third quarter. At the same time, business revenues have also climbed at a time when economic uncertainty remains.
JPMorgan has collected the most investment banking fees among its competitors so far this year, according to analytics firm Dealogic.
JPMorgan Chase’s Jamie Dimon details his observations after a visit to China, with FOX Business’ Maria Bartiromo. (Qilai Shen/Bloomberg via Getty Images)
Stocks hit all-time highs during the quarter, driven by optimism over U.S. interest rate cuts and strong earnings from big tech companies.
Equity revenues jumped 33% to $3.3 billion in the third quarter, while fixed income revenues jumped 21% to $5.6 billion, largely driven by higher revenues from rates, credit and securitized products.
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Going forward, interest rate uncertainty and the ongoing U.S. government shutdown could reignite market volatility, benefiting Wall Street trading desks.
As the government shutdown delays the release of key economic indicators, investors will focus on remarks from major company CEOs, including Dimon, for their views on the economy.
Earlier this week, JPMorgan announced plans to hire bankers and invest up to $10 billion in U.S. companies critical to national security and economic resilience, as part of a broader $1.5 trillion commitment.
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The bank’s overall revenue increased 9% to $47.1 billion in the quarter.
JPMorgan shares were little changed in volatile trading before the bell.
