Market punishes Wall Street banks after quarterly report

Shares of Wall Street-listed financial institutions such as Wells Fargo, Bank of America, Goldman Sachs, Morgan Stanley, and JPMorgan fell Tuesday, reporting a loss of $33.915 billion in market capitalization after releasing their quarterly reports.

Despite banks reporting positive second-quarter results, better than analysts' consensus expected, their stocks displayed erratic performance.

Wells Fargo shares fell the most during the day (-5.49%) to $78.85 per share. In market value, they lost $14,871.44 million.

Another firm that also fell was Bank of America (BofA), the second-largest bank in the United States (-1.95%) to $46.15 per share. This result led the financial company to lose $6,929.41 million in market capitalization.

Morgan Stanley (-1.65%) joined this list at $141.59. In market value, the bank fell $3,817.83 million.

Shares of investment bank Goldman Sachs fell 1.51% to $702.51 per share, losing $3,310.78 million in market value.

JPMorgan shares fell 0.85% to $286.26, closing the day with a loss of $5,974.58 million in market capitalization.

Citigroup shares were the only stock in the sector to post positive figures following the second-quarter financial reports, rising 3.61% to $90.66, representing a market value increase of $6,014.3 billion.

They do not convince the market

On the earnings front, reports from several financial heavyweights failed to impress investors.

Wells Fargo beat second-quarter earnings estimates but lowered its 2025 guidance for net interest income, sending shares lower.

The bank indicated that the decline in interest income from its markets business led to the reduction in its net interest income forecast. Analysts and investors were skeptical about its ability to meet its targets after a slow start to 2025.

JPMorgan CEO Jamie Dimon praised his bank's results but warned that risks remain ahead.

“The U.S. economy remained resilient during the quarter,” Dimon said. “The completion of tax reform and potential deregulation are positive for the economic outlook. However, significant risks remain, including tariff and trade uncertainty, worsening geopolitical conditions, high fiscal deficits, and rising asset prices.”

Citi CEO Jane Fraser stated that they have "posted another very positive quarter and continue to demonstrate that our strong results are sustainable in a variety of environments."

He added that the latest results included the turbulent market period that began in early April. He asserted that this type of volatility can boost profits in equity and fixed-income trading at major banks, including Citigroup.

"I suspect volatility will be a feature, not a flaw, of the new world order, and we will benefit from it," Fraser said. (Reporting from news agencies)