Of Meme Stocks and Main Street
Trump officials like to say their policies are focused on helping Main Street, not Wall Street. 'Wall Street has done very well over the past few decades, and now it is Main Street's turn to shine,' Treasury Secretary Scott Bessent said last month. In case he hasn't noticed, Wall Street is doing great, Main Street not so much.
President's Trump's whipsawing tariffs have increased volatility in equities, fixed-income and commodity markets along with foreign exchange rates. Such fluctuations make it harder for businesses to invest and may mean they have to pay more to hedge financial risks. But the volatility has been a gold mine for Wall Street trading desks.
Financial industry news site Investment Executive reported this week that the largest U.S. investment banks recorded a 17% aggregate increase in trading revenues in the second quarter compared to the same period last year. Goldman Sachs and Morgan Stanley reported more than a 20% increase in equities trading revenue. Talk about springtime for bankers.
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