Goldman Sachs and Morgan Stanley thrive amid market volatility

In recent market activities, particularly noted on July 15, 2025, the stock markets experienced a downward trend, except for the Nasdaq Composite, which posted a modest gain of 0.2%. The rise of the tech sector was led by a significant surge in Nvidia's shares, which closed at an all-time high after increasing by 4%. Meanwhile, other companies affected by tariffs experienced varying fortunes, such as ASML Holding, which saw its stock drop by 8% due to a lowered outlook related to tariff impacts. This highlights the mixed influence of tariffs on market performance. The day also brought new insights on inflation with the release of the Producer Price Index report. This data indicated that while wholesale prices remained stable, there were concerns over potential inflationary pressures from tariffs, hinting at possible economic difficulties ahead. Consequently, the previously anticipated cuts in interest rates by the Federal Reserve saw a decline in probabilities. Market watchers noted the shift in expectations; rates were seen to have a mere 3% chance of being cut in July, down from a high of 62% for a cut in September. The bond market metrics remain a decisive factor in the trajectory of interest rates moving forward. Market participants were closely monitoring the earnings reports of major banks on that Tuesday. Bank of America, Goldman Sachs, and Morgan Stanley all surpassed earnings expectations. Goldman Sachs, in particular, reported a remarkable 36% increase in equities revenue, attributed to heightened trading activity amidst the market's volatility during the first half of the year. Morgan Stanley also exceeded revenue projections, making for a significant day for Wall Street institutions. Another significant player, Johnson and Johnson, announced impressive earnings, beating both top and bottom line estimates while raising its full-year guidance. Investors responded positively, driving the stock price up by 2% in pre-market trading. Overall, the earnings season thus far indicated a projected year-over-year growth of 9%, though the overarching macroeconomic landscape has become increasingly fragile in light of the inflationary concerns raised by tariffs.