Solid Wall Street Earnings Come with a Tariff Asterisk

What a wild way to kick off Q2.

Earnings reports from major financial institutions are generally a good barometer of the economy’s health. However, the Trump administration’s tariff policy sent equity markets nosediving in recent weeks, just as earnings season was getting underway for many firms. The latest results from Wall Street’s biggest names are already starting to feel like ancient history. Plus, uncertainty was a common theme in CEOs’ messages to shareholders.

“As long as we continue to see uncertainty on tariff policies, it will start to lessen demand for dealmaking, which will reduce bank revenues,” said industry analyst Vijay Raghavan.

Q1 in the Bag

The world’s largest asset manager, BlackRock, had its ups and downs in the first three months of 2025. While assets under management hit a record $11.58 trillion, up 11% from the previous year, profit dropped 4% year-over-year. CEO Larry Fink said “uncertainty and anxiety about the future of markets and the economy are dominating client conversations.” 

Meanwhile, Goldman Sachs beat earnings estimates, generating revenue of more than $15 billion thanks to record hauls from equity trading, and profit that jumped to $4.74 billion. However, CEO David Solomon noted, “we are entering the second quarter with a markedly different operating environment than earlier this year.” Other notable reports included:

• JPMorgan, which reported profit of $14.6 billion, up 9% from a year prior. CEO Jamie Dimon said tariffs and potential trade wars have the economy facing “considerable turbulence.” 
• Wells Fargo profit jumped 6% year-over-year in the first quarter to $4.9 billion, beating Wall Street’s estimates of $4 billion. In its earnings report, America’s fourth-largest bank said it supports the Trump administration’s “willingness to look at barriers to fair trade.” 
• Wirehouse Morgan Stanley beat estimates thanks to record equity trading and strong wealth management results, with profits hitting $4.3 billion compared with $3.4 billion in Q1 2024. 

While potential tax reforms and financial industry deregulation could provide a boost to markets, the environment will remain volatile, Raghavan told Advisor Upside. Future earnings results will probably reflect that, at least until tariff policies are clarified and finalized, he added.