World · Europe · 10 hrs ago
US banks face earnings test as bond yields and inflation rise
Five major US banks are due to release their third-quarter results this week.
The results come after strong earnings in the first half of the year, but analysts expect profits to fall from the second quarter as some trading and deal-making gains fade.
Higher US Treasury yields have weighed on bank shares and can make borrowing, business deals and stock valuations more costly.
Higher interest rates can also help banks earn more on new loans while increasing the cost of deposits and other funding.
Investors will also watch US inflation and retail sales data for clues about household spending and the Federal Reserve’s next interest-rate decisions.
Oil prices above $100 a barrel are adding to pressure on household budgets and business costs.
Banks may benefit from lending and advisory work tied to investment in artificial intelligence, but rising financing costs have already contributed to delays or cancellations of some planned stock-market listings.
The bank results and economic data are expected to offer a broader picture of the US economy and financial markets.
Major US banks are entering third-quarter earnings season as bond yields and inflation rise.
Investors are watching how higher funding costs affect lending, consumer spending and dealmaking.
Analysts expect bank profits to fall from the second quarter, although most large banks are still expected to post annual profit growth.
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 inflation and retail-sales data for signals about the economy and the Federal Reserve’s next rate decisions.
- Who
- Major US banks, including JPMorgan Chase, Goldman Sachs, Citigroup, Bank of America and Morgan Stanley.
- What
- They are reporting third-quarter results amid rising bond yields and inflation.
- When
- Results are due Tuesday and Wednesday; the article was published on October 11, 2026.
- Where
- United States.
- Why
- Investors are assessing bank earnings and the effects of higher funding costs on lending, spending and dealmaking.
This story does not have two clearly opposing sides.
Loan growth has become easier than attracting deposits
The Federal Reserve raised its benchmark interest rate for the first time since 2023.
JPMorgan Chase, Goldman Sachs and Citigroup are due to report third-quarter results.
Bank of America and Morgan Stanley are due to report, and US consumer price data for September is scheduled for release.
The Federal Reserve is scheduled to hold its next meeting.
- Five largest US banks
- Lost about $270 billion in market value from their summer peaks by Friday’s close
- S&P 500 bank index
- Fell about 7.5% during the previous month
- 10-year US Treasury yield
- Exceeded 5%
- September consumer prices
- Report due Wednesday
- Federal Reserve meeting
- October 27–28
Sources
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