Capital Markets Momentum Fades: What it Means for Big Banks in Q3
U.S. banks enter Q3 2026 with supportive lending conditions but face mixed capital markets trends. Investment banking volumes declined 6% YoY in July due to weak debt markets, though M&A and equity underwriting showed strength. Goldman Sachs and Morgan Stanley face greater sensitivity to capital markets weakness, while diversified banks like JPMorgan, Bank of America, and Citigroup benefit from broader revenue streams including loan and deposit growth.