America’s biggest banks are set to post a jump in profits to $31bn for the final three months of 2024 as Donald Trump’s election victory sparked a jolt of trading activity on Wall Street and dealmaking activity picked up.
Some analysts worry that these gains will have set a very high bar for big banks to reach when they report fourth-quarter earnings this week. “You could see a sell-off even if the numbers are reasonably good,” said Christopher Whalen, a veteran industry analyst, who is the head of Whalen Global Advisors. “The stocks have given a little back since the November rally, but the market values still represent exuberance.