US Banks Soar to Annual Highs on Strong Earnings

Shares of three large US banks - Goldman Sachs Group, Inc., JPMorgan Chase & Co., and Bank of America Corp. - surged to their highest levels in a year after posting strong second-quarter earnings.

The banks' robust results were driven by robust performance in investment banking, equities trading, and asset management. Companies continued to tap capital markets and pursue AI-related financing and strategic deals, fueling growth for these major financial institutions.

Goldman Sachs led the climb among banking stocks, surging more than 9% after its record Q2 results triggered a buy-in. The investment bank reported quarterly revenue of $20.98 billion, significantly higher than Wall Street's estimate of $16.4 billion. Goldman Sachs also posted earnings of $15.91 per share, ahead of the consensus estimate.

JPMorgan Chase & Co. rose 2.5% after its results surpassed market expectations. The bank reported revenue of $57.35 billion and earnings per share (EPS) of $7.70 per share, outperforming analyst estimates. JPMorgan delivered its strongest trading quarter on record, with trading revenue jumping 35% year over year to $12.1 billion.

Bank of America Corp. also soared nearly 2% to a record high after beating consensus estimates for revenue and earnings. The bank reported revenue of $31.6 billion and EPS of $1.21 per share, outperforming analyst expectations. Investment banking revenue climbed 50% year-over-year at Bank of America.