Bank Boom

US Banks Beat Expectations

All major US banks beat earnings expectations this week, kicking off quarterly earnings season in earnest. 

The big six — JPMorgan, Citigroup, Goldman Sachs, Wells Fargo, Bank of America, and Morgan Stanley — all reported robust earnings, driven by active dealmaking and trading as well as higher interest rates (= more income from loans). 

Banks also kept expenses in check and saw fewer loan defaults than expected.

Bubble Talk from the Top

Some bank executives, particularly of JPMorgan and Citi, warned of “frothiness” and potential price bubbles in the US equities market, which has been hitting new records driven by hopes pinned on AI technology. 

What’s a price bubble? 

• Happens when asset prices rise far above their actual value
• Often driven by hype, not fundamentals.
• If fundamentals are lacking, bubbles can pop. That’s when a market crash happens.

Why This Matters for New Investors

 Even a strong start to the earnings season doesn’t mean markets are risk-free: 

• Frothy markets can lead to sudden corrections.
• Diversify your portfolio and watch valuations.
• Use earnings season as a learning opportunity, not a trigger to chase trends.
• Always check the fundamentals before acting.

What to Watch This Earnings Season  

With big banks out of the gate, attention shifts to other sectors:  

• Tech giants like Nvidia and Microsoft will reveal how AI is impacting revenue.
• Retailers like Walmart and Amazon show how consumers are coping with inflation.
• Industrials like GE and Caterpillar offer clues on infrastructure spending and the global economy.
• Autos like Tesla and Ford reflect on consumer demand, EV transition, and supply chains.

Watch for guidance, surprises, and sector signals as this gives a snapshot of how corporate America is navigating tighter financial conditions and global uncertainty.

Earnings Season Kicks Off

The new earnings season is here, with US stock markets near all-time highs. While share prices have been soaring, concerns remain over trade tensions, government shutdown, and huge spending in AI infrastructure.