Business · Markets · 13 hrs ago
US bank results and inflation data put markets to the test
JPMorgan Chase, Goldman Sachs and Citigroup are due to report quarterly results on Tuesday, followed by Bank of America and Morgan Stanley on Wednesday.
The results will show how higher borrowing costs are affecting banks, consumers and businesses in the United States.
Analysts expect profits to fall from the second quarter as some unusually strong trading and deal-related income fades, though they still expect annual profit growth at most major banks.
Bank shares have fallen in recent weeks as Treasury bond yields rose, increasing the cost of funding and making some investments less attractive.
Investors are also waiting for US inflation and retail-sales data, including September consumer prices due on Wednesday.
The Federal Reserve raised its main interest rate last month for the first time since 2023, and the new data may affect expectations for its next meeting on October 27 and 28.
Higher rates can help banks earn more on new loans, but can also raise deposit costs and make business deals harder to finance.
Major US banks are entering third-quarter earnings season as rising bond yields and inflation test the momentum behind their profits.
JPMorgan Chase, Goldman Sachs and Citigroup are due to report on Tuesday, followed by Bank of America and Morgan Stanley on Wednesday.
Markets are also awaiting US consumer and producer price data and retail sales figures for signals about inflation, spending and interest rates.
Analysts expect bank profits to fall from the second quarter, although annual profits are still expected to grow at most major banks.
The results and economic data will offer clues about borrowing costs, consumer and business conditions, and the outlook for US growth.
- Who
- Major US banks, including JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley. Investors are also watching US economic data.
- What
- Banks are reporting third-quarter results amid higher bond yields and inflation, while markets await inflation and retail sales data.
- When
- The reports are scheduled for Tuesday and Wednesday; the consumer price report for September is due Wednesday.
- Where
- United States.
- Why
- Markets are assessing bank earnings, borrowing costs, inflation and consumer spending to gauge the economic and interest-rate outlook.
This story does not have two clearly opposing sides.
Loan growth has become easier than attracting deposits, increasing pressure on funding costs.
Major US banks recorded strong results, supported by earnings momentum.
The Federal Reserve raised its benchmark interest rate for the first time since 2023.
US bank shares fell as Treasury yields rose.
JPMorgan Chase, Goldman Sachs and Citigroup are scheduled to report third-quarter results.
Bank of America and Morgan Stanley are scheduled to report, and the September consumer price report is due.
- Bank share losses
- The five largest US banks lost about $270 billion in market value from their summer peaks through Friday’s close.
- Bank index decline
- The S&P 500 bank index fell about 7.5% over the previous month.
- Ten-year Treasury yield
- Above 5% in the recent period.
- September consumer prices
- The report is scheduled for Wednesday and is expected to show an annual rise in prices.
- Federal Reserve meeting
- October 27–28.
Sources
Related news
Investment-linked policy sales rise as complaints increase in Singapore
Singapore Exchange urged to do more for small and mid-cap trading
ADX plans Vienna Basin production work and deeper gas testing in Austria
Azzuro Resources discusses Mongolia exploration, with Red Hill in focus
Banque du Caire to offer 30% stake in Egypt IPO
Telefónica and KKR put Chilean fiber company OnNet up for sale
Egypt’s core annual inflation fell to 14.1% in September
Global demand for Philippine ube outpaces growers’ supply
UAE economy grows 0.4% in first half of 2026 as non-oil sectors expand
PCF Sparkletots to spend S$20 million on staff development over three years
S&P keeps Egypt’s credit rating at B/B with stable outlook
