Trump TACO again! The three major AI giants' IPOs lead Wall Street into a "golden quarter", with Bank of America stocks skyrocketing to new historical highs.

Note that on Thursday, Bank of America Corp's stock reached an all-time high, as investors were optimistic about the potential for a resolution to the Iran situation and SpaceX's record-breaking IPO. The KBW Bank Index surged 1.9%, closing at 176.73 points, surpassing the previous high of 176.40 points set on February 9th. All 24 banks in the benchmark index closed higher, with Citigroup Inc. and Goldman Sachs Group, Inc. leading the gains. The overall market also saw a rebound, with the S&P 500 index rising 1.8%. The rally started around 1:30 pm New York time when U.S. President Trump canceled military strikes against Iran and hinted at a possible agreement between the two countries, causing stock prices to soar and oil prices to drop. This sparked hope of ending the war that had been disrupting global markets. The positive sentiment surrounding bank stocks was also boosted by the first-time public offerings of non-listed tech giants SpaceX, Anthropic, and OpenAI. Following the selection of Goldman Sachs Group, Inc. and Morgan Stanley as joint lead underwriters for Elon Musk's SpaceX IPO, both companies' stocks traded near historic highs. Companies such as Anthropic, the creator of Claude Chatting Siasun Robot & Automation, and OpenAI, the creator of ChatGPT, have also chosen Morgan Stanley and Goldman Sachs Group, Inc. to lead their public offerings. According to a statement released by SpaceX on Thursday on their website, the company raised $750 billion, setting a new record for the largest IPO ever. Industry research analyst Herman Chen stated, "The strong performance of bank stocks reflects the potential resolution of the Middle East conflict and the overall optimism in the market ahead of the SpaceX IPO." Earlier this week, at the Morgan Stanley American Financial Group, Inc. conference in New York, top executives of major U.S. investment banks praised consumer resilience. Chen noted that executive speeches provided positive assessments of market activity, loan growth, credit quality, and consumer spending. He added that the operating environment for banks also looks constructive. Marian Lake, who oversees consumer and community banking at JPMorgan Chase, stated that the company's credit card cancellation rates for this year are at the lower end of expectations. Meanwhile, Wells Fargo & Company Chief Financial Officer Mike Santomassimo pointed out that consumer bank card spending in May increased by 9% year-on-year, while credit performed better than expected. Cross-asset trading is reaching a comprehensive outbreak! 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 experiencing a strong uptrend. Many signs indicate that top financial institutions on Wall Street are entering a "golden quarter" with performance far exceeding expectations. From the optimistic signals recently released by top executives, the double dividend brought by high market turnover rates and corporate activity is pushing up sales, trading, and investment banking revenues of major banks, making the cautious expectations previously held by the market appear overly conservative. Recently, top executives of two Wall Street giants, Bank of America Corp (BAC.US) and Citigroup (C.US), have successively sent optimistic signals. The latest forecasts from both banks indicate that, benefiting from the overall warming of cross-asset trading and the continued amplification of market trading volume, their second-quarter trading business revenues will significantly exceed previous industry expectations. Jim DeMare, Co-President of Bank of America Corp, stated that the growth momentum of the bank's trading business is continuously strengthening, and revenue growth is expected to be higher than the bank's 15% forecast from last month. "I think our performance will be slightly better than that forecast," DeMare said at the Morgan Stanley financial services conference on Tuesday. Gonzalo Luchetti, CFO of Citigroup, stated that Citigroup is preparing to welcome the substantial income brought by cross-asset trading, and the growth momentum appears to be more sustainable than at the beginning of last year. Luchetti stated at the financial conference hosted by Morgan Stanley on Tuesday that the bank's market business revenue is expected to achieve a high-single-digit to low-double-digit percentage growth. This is significantly higher than the 2% increase predicted by analysts in the Bloomberg survey. The strong market activity is not only causing a frenzy in the secondary market but is also transmitting positively to the primary market and corporate services field, resulting in a key turning point for long-term sluggish investment banking business in the second quarter of 2026. In this dividend period driven by market activity, the trading departments of major Wall Street banks are the most direct beneficiaries, with banks consistently raising their performance guidance for the second quarter. As the July earnings season approaches, major Wall Street banks are expected to deliver a collective performance that surpasses market expectations, setting an optimistic tone for the global financial market in the second half of the year. Against the backdrop of loose monetary policies and improving corporate profit expectations, the banking industry's ongoing recovery cycle may continue for a longer period.