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Wall Street Traders Set for $27.8 Billion Haul From Wild Markets

  • JPMorgan, Morgan Stanley to kick off second-quarter earnings
  • Fixed-income desks likely generated a combined $16.4 billion
A trader works on the floor of the New York Stock Exchange.

A trader works on the floor of the New York Stock Exchange.

Photographer: Michael Nagle/Bloomberg

The biggest U.S. banks are poised to report a double-digit increase in trading, the result of big market swings spurred by recession fears, soaring inflation and global turmoil, including Russia’s invasion of Ukraine.

Trading revenue at the five biggest Wall Street firms likely climbed 16% to $27.8 billion in the second quarter, driven by fixed-income desks which are expected to have brought in a combined $16.4 billion, according to analyst estimates compiled by Bloomberg. That increase, along with higher net interest income tied to Federal Reserve rate hikes, should provide a boost to earnings, countering a hit from slowdowns in the companies’ investment-banking and mortgage businesses and a drop in valuations at their wealth-management arms.