US banks earnings: key things you need to know
While net record interest income and a surprisingly resilient American consumer punctuated the first half, the second half of 2023 might be more interesting.
Economic uncertainty is rising, worries about elevated rates continue to hurt investor confidence, but the IPO market seems to be awakening. IGTV financial @AngelineOng takes a look at the what you need to look out for.
(Video summary)
Inflation battle: how high rates will impact banks
The first half of 2023 was a good time for US banks. They made a lot of money from interest and the American consumer was strong. But things might get more interesting in the second half of the year.
There's talk that there could be a recession because interest rates are expected to stay high for a while. This has made investors worried and the stock prices of banks like Goldman Sachs, JPMorgan, and Bank of America have gone down.
Challenges and opportunities
The Federal Reserve, which is in charge of interest rates, has also said that they might raise rates even more to fight inflation. This could affect banks that are involved in the IPO market, like Goldman Sachs and Morgan Stanley. The IPO market is when private companies go public and it's been happening a lot lately with companies like Instacart and ARM. If this keeps happening, the banks involved in IPOs could do well.
Overall, the second half of 2023 is uncertain for US banks. The possibility of a recession and high interest rates are big concerns. But there could be opportunities in the IPO market if more companies go public. It's important to pay attention to what the banks say and what the Federal Reserve does.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
