Wall Street Traders Cash In on Record Market Swings
The second quarter of 2025 brought exceptional profits for equities trading desks at the nation’s largest banks. All five major players — JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citigroup, and Bank of America — posted double-digit year-over-year growth, riding a wave of volatility sparked by geopolitical tensions and unpredictable trade policies from the Trump administration.
Goldman Sachs led the pack with a record-breaking $4.3 billion in equity trading revenue, marking a 36% increase over the same period last year. The firm’s performance set a new Wall Street benchmark for quarterly stock trading income. Morgan Stanley followed with a 23% rise, citing “higher client activity,” while Bank of America reported a 10% increase due to stronger performance and more client participation. At Citigroup, CEO Jane Fraser credited upgraded trading platforms for enabling record volumes.
Market Volatility Proves a Boon for Trading Desks
Unlike traditional asset management, equities trading desks profit from market movement itself — not necessarily rising prices. The second quarter’s sharp volatility provided fertile ground for such strategies. Events including Trump’s “Liberation Day” tariffs, subsequent tariff reversals, and heightened conflict in the Middle East drove extreme short-term fluctuations.
These swings helped drive trading volumes to multi-year highs. The CBOE Volatility Index, or VIX, surged in April to levels not seen since the COVID-19 crisis. Though it has since calmed, the mid-quarter spike gave traders the volatility they needed to maximize revenue.
Robinhood Benefits as Retail Surge Follows Wall Street
It wasn’t just institutional desks that capitalized on market turmoil. Robinhood stock jumped more than 160% in 2025, as the trading platform gained momentum from the same volatile backdrop. The Trump administration’s support for crypto further boosted Robinhood’s activity, with digital asset trading remaining a core driver for its business model.
Robinhood is set to release its next earnings report on July 30, and expectations are high. Market watchers anticipate strong results that mirror those of Wall Street’s biggest banks. The return of high-frequency trading, retail speculation, and crypto enthusiasm has placed Robinhood in a strong competitive position.
Outlook Remains Volatile — and Profitable
As uncertainty around tariffs and international tensions continues, Wall Street’s trading desks remain poised to benefit. JPMorgan CEO Jamie Dimon commented that he was “not surprised” by the market’s behavior, hinting at further upside potential if volatility persists. While volatility can spook long-term investors, it remains a vital engine for revenue generation in institutional trading.
If current conditions hold, the second half of 2025 may continue this trend of strong trading income. Equities desks across the bulge bracket banks are expected to remain aggressive in capturing gains from short-term market movements and sudden shocks — conditions increasingly common in the current political and economic environment.
