Cross-asset trading has fully exploded! Bank of America (BAC.US) and Citigroup (C.US) have successively raised their guidance, making the second quarter a "harvest season" for Wall Street's major banks.

Notice that the global financial markets in the second quarter of 2026 are showing much stronger vitality than expected. Recently, two financial giants on Wall Street, Bank of America Corp (BAC.US) and Citigroup (C.US), have successively sent out optimistic signals. The latest forecasts from both banks indicate that, benefiting from a comprehensive rebound in cross-asset class trading and a continuous increase in market trading volume, their second-quarter trading revenue will significantly exceed the industry's previous expectations. This market activity, driven by multiple favorable factors, is transforming into tangible revenue momentum for the banks. Bank of America Corp Co-President Jim DeMare stated that the growth momentum of the bank's trading business is continuously strengthening, with revenue growth expected to be higher than the 15% predicted by the bank last month. "I think our performance will be slightly better than that forecast," DeMare said at the Morgan Stanley financial services conference on Tuesday. Bank of America Corp CEO Moynihan had previously stated at the end of May that sales and trading revenue in the second quarter could increase by around 15% compared to the same period last year. DeMare pointed out that since this forecast was released, the performance of the market department has been on the rise, mainly due to the strong performance in stock trading. DeMare said, "The growth is definitely driven by the stock business," and also mentioned that the investment banking business is in a "fairly good state," despite the uncertainty surrounding the GEO Group Inc. political situation, discussions around mergers and acquisitions (M&A) and IPOs are ongoing. "Business activity remains robust," he said. Last year, Bank of America Corp set multiple financial goals aimed at increasing revenue in all business segments and reducing the company's efficiency ratio. Moynihan had stated last month that net interest income, which accounts for more than half of the bank's revenue, might achieve high-end growth in the 6% to 8% target range for the year. According to Citigroup's CFO Gonzalo Luchetti, Citigroup is preparing to welcome the lucrative income from cross-asset class trading, and its growth momentum appears to be more sustainable than at the beginning of last year. Luchetti stated at the Morgan Stanley financial conference on Tuesday that the bank's market business revenue is expected to achieve high single-digit to low double-digit percentage growth. This is far higher than the analysts' predicted 2% growth in Bloomberg surveys. Luchetti said, "We have also seen good trading volumes in the second quarter," "These constitute a more stable revenue growth force throughout the group." He also predicted that investment banking service fees would achieve mid to high double-digit percentage growth, in line with analysts' expectations of 15% growth. He added that performance may even be better by the end of June. This income may inject stronger growth momentum into Citigroup, whose stock price has already risen by 15% this year. CEO Jane Fraser has been praised for leading the long-underperforming bank on Wall Street through a transformation. Surging market activity drives unexpected growth In the second quarter of 2026, the global financial markets are showing remarkable momentum. After a period of observation and adjustment, cross-asset trading is showing a strong trend. Various signs indicate that top Financial Institutions, Inc. on Wall Street are ushering in a "golden quarter" with performance far exceeding expectations. Based on the optimistic signals released by top executives recently, the double dividends brought by high market turnover and high corporate activity are powerfully boosting the sales, trading, and investment banking revenue of major banks, making the previously cautious expectations of the market appear too conservative. The market activity is not suppressed by traditional seasonal factors, but presents a healthy pattern of resonance and strengthening of multiple asset classes. This round of strong market activity is not limited to a specific sector but covers almost all mainstream trading markets, including stocks, derivatives, fixed income, foreign exchange, and commodities. Unlike previous "panic trading" caused by intense conflicts with GEO Group Inc, tariff frictions, or sudden policy shocks, the increased trading volume this quarter is more based on rational pricing demands after the clarity of the macroeconomic cycle transition and inflation path. This trading flow generated by institutional fund reallocation provides banks with more continuous and stable revenue momentum. The strong market activity is not only causing a stir in the secondary market but also positively transmitting to the primary market and corporate service sector, marking a crucial turning point for the long-depressed investment banking business in the second quarter of 2026. During this dividend period driven by market activity, the trading departments of major Wall Street banks have been the direct beneficiaries, with each bank successively raising their performance guidance for the second quarter. With the upcoming July earnings season, major Wall Street banks are expected to deliver performances surpassing market expectations, setting an optimistic tone for the direction of the global financial markets in the second half of the year. Against the backdrop of marginal easing of monetary policy and improved corporate profit expectations, this recovery cycle in the banking industry may last longer.