Wall Street's trading boom in the era of the pandemic may soon come to an end.J.P. MorganCEO Jamie Dimon has hinted that trading revenue could fall 38% year over year — a larger drop than previously anticipated.
Damon is on MondayMorgan StanleyAccording to the virtual conference, J.P. Morgan Chase's second-quarter trading revenue will fall to slightly above 6 billion US dollars. This figure may eventually fall short of the $6.5 billion forecast that analysts have lowered (according to forecasts compiled by Bloomberg).
Previously, market turmoil caused by the pandemic brought opportunities for Wall Street giants to make money. Following Dimon's speech, J.P. Morgan's stock price fell 2%, extending the decline after reaching a record high earlier this month. Other bank stocks also declined.
Dimon also lowered J.P. Morgan's net interest income forecast. The forecast for this year is 52.5 billion US dollars, which is lower than the previous estimate of 55 billion US dollars.