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US bank stocks, including JPMorgan Chase, Wells Fargo, and Citigroup, rallied on market volatility driven by tariff uncertainty ahead of Q2 earnings. According to Crisil Coalition Greenwich, global banks, including US lenders, are expected to report a 10% gain in markets revenue due to shifting US tariff policies. Bank of America and Citigroup executives expect markets revenue to climb by mid-to-high single-digit percentages in Q2, driven by volatility in stocks and treasuries.

U.S. bank stocks, including JPMorgan Chase, Wells Fargo, and Citigroup, experienced a significant rally on Thursday, fueled by market volatility stemming from tariff uncertainty. According to Crisil Coalition Greenwich, global banks, including U.S. lenders, are expected to report a 10% gain in markets revenue due to shifting U.S. tariff policies. This outlook comes ahead of the Q2 earnings season, which is led by major banks.

The rally was driven by a report from Crisil Coalition Greenwich, which stated that global banks are set to benefit from a 10% increase in markets revenue. This gain is attributed to traders placing bets on the shifting U.S. tariff policies, which have led to increased volatility in the market. Bank of America and Citigroup executives also expect markets revenue to climb by mid-to-high single-digit percentages in the second quarter, driven by volatility in stocks and treasuries.

The market turmoil, particularly the U.S. President Donald Trump's tariff announcements in April, has spurred increased trading volumes. According to Tradeweb Markets, which operates electronic marketplaces for rates, credit, equities, and money markets, the average daily volume in April reached $2.7 trillion, up 38.6% from a year earlier.

Investors are closely watching the earnings reports of major banks, including JPMorgan Chase, Citigroup, Wells Fargo, and Goldman Sachs, scheduled for the week of July 16. Analysts expect these banks to report stronger profits, driven by buoyant trading and a modest rebound in investment banking. Despite economic uncertainty over U.S. tariff policies, the financial health of consumers and businesses remains resilient, contributing to a positive outlook for banks.

The expected gains in markets revenue are not limited to the U.S. banks. Tradeweb Markets reported a record $2.71 trillion average daily volume in March, indicating a robust trading environment. Additionally, the Federal Reserve's removal of the asset cap on Wells Fargo in June 2025 has cleared a major obstacle to its growth plans, further boosting investor confidence.

In summary, U.S. bank stocks are rallying on the expectation of strong Q2 earnings, driven by increased market volatility due to tariff uncertainty. The financial outlook remains positive, with analysts expecting robust trading revenues and a modest rebound in investment banking. Investors will closely scrutinize the earnings reports of major banks in the coming weeks.

References:
[1] https://www.tipranks.com/news/u-s-bank-stocks-rally-on-trump-driven-market-volatility-ahead-of-q2-earnings
[2] https://seekingalpha.com/news/4466420-mining-stocks-rally-as-trump-confirms-copper-tariffs-starting-august-1
[3] https://finance.yahoo.com/news/us-bank-profits-climb-stronger-103631168.html
[4] https://www.tradingview.com/news/zacks:f24bc650a094b:0-wells-fargo-to-report-q2-earnings-buy-now-or-wait-for-the-results/