US banks and BlackRock post record profits amid market volatility

Major US banks and asset manager BlackRock reported record profits in the second quarter of 2026, fueled by a surge in trading activity and a buoyant stock market. JPMorgan Chase's net profit rose 41% to $21.2 billion, while Goldman Sachs saw a 72% jump in equity trading revenue to $7.4 billion Source: El Confidencial. BlackRock's assets under management hit a record $15.34 trillion, with net income up 33% in the first half Source: Euronews.

Trading Bonanza

Goldman Sachs, JPMorgan, Bank of America, Citigroup, and Wells Fargo all beat market estimates, driven by equity and fixed-income trading. JPMorgan's trading revenue reached a record $12.1 billion, with equity trading up 86% Source: La República. Bank of America's equity trading surged 70% to $3.6 billion Source: Portafolio. The volatility from geopolitical tensions and AI-related market movements created lucrative opportunities for banks.

BlackRock's Record

BlackRock's record assets reflect strong inflows—$192 billion in Q2 alone—and market gains. CEO Larry Fink cited "solid market fundamentals" and technology-driven earnings momentum Source: Infobae. The firm's iShares ETF range surpassed $6 trillion, and alternative investments, though small, generate 15% of fees Source: Euronews.

The Retail Investor Gap

Despite the bonanza for institutions, most retail investors underperformed the S&P 500. Interactive Brokers CEO Thomas Peterffy noted that more clients lagged the index than beat it Source: El Confidencial. Robinhood's index of favorite stocks has trailed the Nasdaq and S&P 500 since 2020. The disparity highlights that while banks and hedge funds profit from volatility, average investors often miss out.