US Banks Post Record Q2 Profits as Economic Outlook Deteriorates

Morgan Stanley reported record second‑quarter revenue and profit, with equities trading revenue jumping 69% and beating analyst estimates. The strong results came alongside a CNBC survey indicating that the economic outlook is worsening, with respondents increasingly attributing the decline to the Trump administration.

JPMorgan chief executive Jamie Dimon warned that the bank’s own record $21.2 billion profit reflects “over‑earning” and highlighted the sector’s growing reliance on AI‑related financing and gains from the SpaceX IPO. Both institutions’ earnings underscore a divide between Wall Street’s profitability and broader consumer concerns about market volatility and future growth.