JPMorgan Chase & Co. is set to announce its first-quarter earnings on Friday, prior to the market opening. As the first major U.S. bank to report, the financial institution is under scrutiny given the escalating economic tensions.

Market Expectations

According to estimates from LSEG, analysts predict a quarterly earnings per share of $4.61 and revenue totaling $44.11 billion. These metrics will provide insight into the bank’s performance during a period marked by rising economic anxieties.

Impact of Trade Policies

Faced with heightened global trade tensions, which surged following President Donald Trump’s announcement on April 2 to implement aggressive tariff policies, observers are keen to see how this environment impacts consumers and businesses alike. Jamie Dimon, CEO of JPMorgan Chase, remarked that these trade tensions could potentially spur a recession. Following his comments, Trump announced a temporary reduction in tariff rates for most countries, excluding China.

Investment Banking and Trading Desk Outlook

Although the upcoming earnings report reflects a quarter that ended prior to the recent ‘Liberation Day’ announcement by Trump, current market conditions have led to significant volatility in bank stocks driven by recession fears. This uncertainty is expected to dampen some investment banking activities, like initial public offerings (IPOs) and merger advisories.

Conversely, such a climate could be favorable for trading desks at Wall Street firms to capitalize, potentially leading to increased profit margins.

Upcoming Earnings Reports

In addition to JPMorgan Chase, other prominent banks such as Wells Fargo, Morgan Stanley, Goldman Sachs, Bank of America, and Citigroup are slated to report their earnings in the coming week. Investors will be closely watching these announcements to gauge the overall health of the banking sector amidst prevailing economic challenges.