Bank of America recorded an uptick in first-quarter profit as heightened market turbulence fed trading activity across its desks. The bank said sales and trading revenue climbed 13% to $6.4 billion in the quarter, reflecting heavier client engagement during a volatile stretch for global markets.
Global equity markets began 2026 on a broadly positive note, supported by late-2025 interest rate cuts and healthy corporate earnings that carried momentum into the new year. That optimism, however, diminished as the Federal Reserve adopted a more hawkish policy stance, concerns grew about potential overvaluation in artificial intelligence-related stocks, and U.S. involvement in Middle East tensions intensified. These developments injected volatility and prompted a marked shift in investor positioning.
The market rotation that followed saw investors step away from high-growth technology names and move toward defensive, value-oriented sectors. Such swings tend to benefit investment banks because trading operations produce more revenue when client flows increase, a dynamic apparent in Bank of America’s quarterly results.
Bank of America reported net income of $8.6 billion, or $1.11 per share, for the three months ended March 31, up from $7.4 billion, or 89 cents per share, in the same period a year earlier. The bank’s shares rose 1.5% in pre-market trading following the results.
Peer institutions also signaled stronger trading environments. JPMorgan Chase released its own first-quarter profit on Tuesday that beat analysts’ estimates, likewise aided by robust trading and dealmaking activity. Despite these pockets of strength, major banks including JPMorgan, Bank of America and Wells Fargo have traded lower so far in 2026, lagging the broader S&P 500 index, which was up about 1.8% as of the last close.
The quarter’s performance underscores how episodic market volatility and shifts in investor sentiment can materially affect revenue mix at large banking franchises, particularly the contribution from sales and trading operations.