JPMorgan Chase earnings suggest U.S. economy is still humming

JPMorgan Chase kicked off big bank earnings season Tuesday with stronger-than-expected results, posting over $14 billion in profit for the second quarter — a 9% gain over this period last year once you exclude special items. All in all, it’s a comfortable beat bolstered by a rebound in dealmaking, record trading revenue, and strength in consumer banking.

Let’s look at what the results say about both the bank, and the broader U.S. economy right now.

Jamie Dimon does not think we’re out of the woods

Despite the solid results, Jamie Dimon warned about “a number of uncertain forces,” including “tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits, and elevated asset prices.” That underscores how the quarter was still shadowed by macro unease. Dimon’s tone remains guarded, even as fundamentals look solid.

Markets are humming

The bank posted record trading revenue in the quarter — up 14% in fixed income and 15% in equities — suggesting plenty of investor participation, likely tied to early Q2 dips and tech-led optimism, plus the abundance of sideline cash. This also tracks with the recent record highs in the S&P 500 and strong performance among marquee-name companies like Nvidia.

Upper-income consumers feel fine

The company’s Consumer & Community Banking (CCB) division posted a 23% jump in net income, driven by healthy credit card activity, continued account growth (around 500,000 new checking accounts), and new product launches. That implies continuing consumer demand, despite relatively high interest rates and economic uncertainty, including what economists call “softness” in the white-collar labor market.

JPMorgan’s ability to grow card loans while keeping delinquencies manageable suggests household balance sheets in the prime credit tiers remain solid, though not necessarily unshakeable.

Investment banking is recovering, but not surging

Investment banking revenue rose 9% year-over-year, with strength in advisory and debt underwriting. That signals gradual thawing in M&A and capital markets. Equity underwriting remained a soft spot, suggesting some hesitation or sense of a not entirely favorable capital environment persists in public equity markets despite the major-index rally.

What does the stock market think of JPM results?

At least before the bell, investors don’t appear to think the JPM results are worth celebrating. Shares edged down about 0.5% premarket on Tuesday.