Big Banks Launch Q3 Earnings as $350 Billion Selloff Puts Soaring Yields in Focus
Updated
Updated · Yahoo Finance · Oct 11
Big Banks Launch Q3 Earnings as $350 Billion Selloff Puts Soaring Yields in Focus
1 articles · Updated · Yahoo Finance · Oct 11
Summary
Tuesday starts Q3 earnings season with JPMorgan, Goldman Sachs, Wells Fargo and Citi reporting first, putting Wall Street’s biggest banks at the center of the week.
Multidecade-high yields are the key pressure point: analysts expect quarterly profit, trading revenue and M&A fees to retreat even though most major banks should still post year-over-year profits.
Financials have already absorbed the market’s concern, with the XLF sector ETF down about 4% over the past month and the five biggest banks losing roughly $350 billion in market value.
Wednesday adds Bank of America, Morgan Stanley and BlackRock, while ASML and Taiwan Semiconductor offer another read on the AI trade and inflation data could shape the Fed’s October rate decision.
Investor confidence in bank outperformance has weakened sharply, with 35% of institutional investors expecting the group to beat the broader market, down from 68% in July and 82% in December.
Will towering Treasury yields finally crush Wall Street's record banking profits, or can resilient dealmaking keep the financial giants afloat this season?
Could this week's sticky inflation data force the Federal Reserve into a shock rate hike, unexpectedly derailing the entire Q3 earnings rally?
As TSMC pumps billions into expansion, is the relentless AI chip boom a sustainable economic engine or a ticking overcapacity time bomb?