US stocks climbed on Wednesday over a solid start to earnings season, led by strong results from major Wall Street banks. In early trading, the Dow Jones Industrial Average gained 290 points (0.63%) to reach 46,560.88, rebounding from Tuesday’s volatile session.
The S&P 500 advanced 51.48 points (0.77%) to 6,695.79, while the Nasdaq Composite (^IXIC) added 214.83 points (0.95%) to 22,736.53.
Major US banks delivered strong third-quarter results for 2025, due to heavy investment banking activity. Bank of America, the country’s second-largest bank, reported a 23% jump in profit from a year earlier to $8.47 billion, or $1.06 per share, beating expectations of 95 cents.
Revenue rose 10.8% to $28.24 billion, helped by an active summer for dealmaking and strong trading performance. Investment banking fees surged 43% to $2 billion, while trading revenue climbed 8% to $5.3 billion.
Following the results, Bank of America’s stock rose nearly 5% in premarket trading.
Morgan Stanley also posted strong results, with profits rising 45% to $4.6 billion. Trading revenue increased 24% to $6.28 billion across equities, fixed income, currencies, and commodities, while the firm benefited from advising on several large mergers and acquisitions.
Other major banks, including JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs, also exceeded expectations. JPMorgan’s investment banking fees increased 17% to $2.61 billion, Goldman Sachs saw a 42% jump to $2.65 billion, and Wells Fargo’s dealmaking fees rose 25% to $840 million. Citigroup lifted its earnings forecast to $1.91 per share on strong revenue growth.
The third quarter was marked by a pickup in corporate deal activity, mergers, acquisitions, and capital raising. Combined with ongoing market volatility, these factors created a favourable backdrop for Wall Street operations.
Lending also strengthened, with Bank of America reporting record quarterly lending revenue of $15.38 billion, up 9% from the same period last year.