Big banks post strong Q3 profits, but warn higher rates and inflation could bite
Goldman’s trading revenue helped offset weaker results at JPMorgan and Wells Fargo as banks warned that higher rates and inflation could slow dealmaking.
- On Tuesday, Goldman Sachs beat profit estimates as equities trading revenue surged 72%, while JPMorgan Chase missed forecasts and Wells Fargo posted weaker revenue amid bond market volatility.
- JPMorgan CEO Jamie Dimon warned that persistent budget deficits, sticky inflation, elevated asset prices, and rising interest rates continue to shift beneath the surface, creating headwinds for lenders.
- Broadcom CEO Hock Tan likened AI investment flows to "casino gambling," triggering a semiconductor selloff that pressured tech stocks and raised questions about the durability of the technology boom.
- Multi-Decade high Treasury yields pushed borrowing costs upward, with the 10-year yield at 5.221%, creating a challenging operating environment for lenders navigating elevated credit demand and market instability.
- Wednesday's consumer price index report will provide crucial clarity on the Federal Reserve's interest-rate trajectory, with economists estimating headline inflation accelerated to 3.6% year-over-year in September.
165 Articles
165 Articles
Investors on lookout for key US inflation data to gauge impact of rising energy costs on Fed's future policy roadmap, while broader tech selloff pressure equity markets across US, Europe
Daily Journal
US futures mostly higher as Wall Street braces for latest consumer inflation report
U.S. futures are mostly higher as Wall Street braces for one of the last price reports the government will issue before the midterm elections. Consumer prices are forecast to have risen 3.6% in September compared with a year earlier, up…
European stocks rose in early trading today, recovering from modest losses in the previous session. The pan-European STOXX 600 index rose 0.32% to 636.99 points at 10:13 Greek time. The share of the world's largest chip manufacturing equipment supplier, ASML, rose 1.8% after announcing strong financial results. The technology sector rose by 0.8%. ΑΠΕ-ΜΑΝ Read more at iefimerida.gr European stocks rose in early trading today, recovering from mode…
Asia and Pacific grants contrasted despite the resumption of semiconductor securities. To affect high oil prices and caution in view of the inflation data in the United States that limited earnings. (ANSA)
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