Tariff-Linked Market Volatility Drives Trading Revenue Surge at Big Banks, PPI Slowed In June

Barry Adams
16 Jul, 2025
New York City

Stocks on Wall Street edged higher as investors reviewed the latest inflation report and earnings from leading financial services providers. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% after the wholesale inflation showed little impact of the increase in U.S. tariffs. 

Producer prices were unchanged in June from the previous month, following an upwardly revised 0.3% increase in May, the U.S. Bureau of Labor Statistics reported Wednesday.

On an annual basis, the producer price inflation slowed to 2.3% from 2.7% in the previous month, and the core index slowed to 2.6% from 3.2% a year ago.

Morgan Stanley, Goldman Sachs, and Bank of America reported better-than-expected second-quarter earnings, but investors shrugged off strong results. 

 

U.S. Stock Movers

ASML Holding NV dropped 7.6% to $761.19 after the semiconductor equipment maker's quarterly and full-year outlook fell short of market expectations. 

The Dutch company reported better-than-expected second-quarter results, and the company estimated the third-quarter revenue outlook to range between €7.4 billion and €7.6 billion, lower than the expectation of at least €8 billion. 

Morgan Stanley declined 0.8% to $140.51 despite the financial services provider reporting higher than expected earnings in the second quarter. 

Revenue in the quarter increased to $16.8 billion from $15.0 billion, net income advanced to $3.5 billion from $3.1 billion, and diluted earnings per share rose to $2.13 from $1.82 a year ago. 

Wealth management revenue surged to $7.7 billion from $6.8 billion, and institutional securities revenues advanced to $7.6 billion from $6.9 billion a year ago, respectively. 

Goldman Sachs Group edged up 0.1% to $704.57, and the financial services provider reported better-than-expected quarterly results. 

Revenue increased 15% to $14.6 billion from $12.7 billion, net income advanced to $3.7 billion from $3.0 billion, and diluted earnings per share rose to $10.91 from $8.62 a year ago. 

Investment banking revenue increased to $2.1 billion from $1.7 billion, market-making revenue rose to $4.7 billion from $4.3 billion, investment management revenue jumped to $2.8 billion from $2.5 billion, and net interest income advanced to $3.1 billion from $2.0 billion a year ago, respectively.