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Nasdaq's logo. / Reuters, Yonhap News

A boom in artificial intelligence (AI) investments has propelled the U.S. stock market to new heights, driving the equity trading revenues of major banks to record-breaking levels in the second quarter of this year, Bloomberg News reported on July 14 (local time). Equity trading refers to the business segment where banks generate revenue by buying and selling stocks and related financial instruments on behalf of their clients.

JPMorgan Chase set an all-time quarterly record, bringing in $6 billion in equity trading revenue for the second quarter. Goldman Sachs also delivered a stellar performance, generating $7.42 billion over the same period to secure the highest quarterly revenue in the industry.

Citigroup posted $7.4 billion, representing a 45% increase compared to the same period last year, though investors deemed it fell short compared to its competitors.

Bank of America generated $3.6 billion, a 70% surge year-on-year that marked its own record high for equity trading, while Wells Fargo also enjoyed double-digit growth, reaching approximately $2.8 billion. Both banks significantly outperformed market expectations.

When President Donald Trump took office last year, the combined equity trading revenue of the six largest U.S. banks stood at around $13.5 billion, but the figure has grown steadily quarter after quarter since then.

With Morgan Stanley yet to report its earnings, there is growing speculation that the total equity trading revenue for this quarter could surpass $250 billion.

Analysts attribute this boom to an influx of capital from investors eager to capitalize on the AI frenzy and a highly open capital market environment. Everyone from sovereign wealth funds to retail investors has rushed into new stock issuances, fueling a red-hot market. This trend culminated in the initial public offering (IPO) of SpaceX, which set a record as the largest-ever listing at $75 billion, Bloomberg explained.

Coupled with a recovering mergers and acquisitions (M&A) market, Wall Street's overall business has entered a fast-track growth phase. Analysts note that banks are continuing to post record-breaking performances, enjoying a boom in both equity trading and investment banking segments.

                                                                                                          Park Jin-sook