The post U.S. banks brace for slowdown while Europe posts big wins appeared on BitcoinEthereumNews.com.

Wall Street is heading into earnings week with pressure rising fast. After months of record highs in both the U.S. and Europe, things are starting to look unstable. The American banking giants are first up to report, and the timing couldn’t be worse. The backdrop? Trade disputes, fresh tariffs, political mess at the G20, and a U.S. economic calendar that looks like a minefield. According to CNBC’s Jenni Reid, it all starts Tuesday, when JPMorgan, Goldman Sachs, Bank of America, Citi, and Morgan Stanley will report results within two days. Investors are watching to see how much Trump’s trade policies have started to bite. Goldman Sachs analysts said U.S. companies are dealing with rising costs from tariffs but have only raised prices slightly. That means profits are taking the hit. “There are conflicting messages on the margin outlook,” Goldman’s team wrote, pointing to weak responses by companies facing higher import costs. U.S. banks brace for slowdown while Europe posts big wins The squeeze is already showing up in the numbers. Goldman forecasts that earnings-per-share growth for the S&P 500 will drop to just 4% this quarter compared to last year. That’s a sharp fall from the 12% growth posted in the first quarter. There’s no mystery here. The costs are going up, sales aren’t rising fast enough to keep up, and companies are stuck in the middle. While American firms are bracing for bad news, European banks are surprising people. Jenni Reid reported they just posted their best first-half performance since 1997. Gains came from a surge in investment banking profits and a run of merger and acquisition activity. U.S. firms might be hoping to copy that formula, but there’s no certainty. Investors will be looking closely at trading revenue and deal pipelines when these banks open their books this…

---

Filed under: News - @ July 13, 2025 5:19 pm