An expected boom year for investment banks is on hold as jitters about the economy, along with President Trump’s tariffs, have caused U.S. stocks to tumble. Banks, which have seen their shares plunge in the past week, are scheduled to kick off first quarter earnings Friday.
David Konrad, a KBW equity research analyst, said there were hopes last fall that lower regulations and a surge in animal spirits would unlock both the IPO market and M&A activity in early 2025, according to an April 3 note. Konrad has now lowered Q1 estimates across the board for the majority of globally systemically important banks, or G-SIBS, due to an expected 5% drop quarter over quarter in investment banking. Volatility from Trump’s tariffs have caused IPOs and many mergers to go on hold, Fortune has reported.
