Wall Street Banks Crush Q2, Goldman Lifts Rivals’ Outlooks

Wall Street’s Q2 earnings season kicked off with a bang, as several major banks delivered results that topped estimates. Surging trading and investment banking revenue was the core driver of higher profits. In response, Goldman Sachs (GS) and others raised earnings forecasts for peers, putting the financial sector back in the spotlight. However, with U.S. markets closed for the weekend on Saturday, July 18, Goldman shares settled at $1065.22 on Friday, July 17 — down 2.76% (-$30.24) from the prior close of $1095.46. The stock opened at $1071.64, hit an intraday high of $1085.93, and a low of $1047.15.

Strong Q2, Trading Revenue Shines

Wall Street’s biggest banks broadly benefited from a strong Q2 in trading and investment banking, according to Reuters.^[Reuters] While specific figures weren’t detailed in the report, multiple banks cited heightened market volatility and a pickup in M&A activity as key drivers of robust trading revenue. On the investment banking side, underwriting and advisory fees also posted significant gains, further boosting overall profits.

Goldman Sachs, a bellwether for the industry, quickly adjusted its profit forecasts for rivals after the earnings releases. Although Goldman itself has not yet reported Q2 results, its research desk issued a note raising earnings estimates for competitors like JPMorgan Chase — a move the market read as a bullish signal for the sector’s outlook.

Bank of America Bullish on JPMorgan

Bank of America doubled down on its bullish call for JPMorgan Chase after the bank’s blockbuster earnings. Analyst Ebrahim Poonawala reiterated a “Buy” rating and lifted the price target to $420 from $408 in a Wednesday (July 16) note, implying 21% upside from the prior close.^[CNBC]

“Q2 results reinforce our positive investment thesis that JPMorgan shares offer one of the most attractive risk/reward profiles in our coverage,” Poonawala wrote. He pointed to JPMorgan’s revenue growth potential tied to capital markets (and AI capex), as well as its ability to monetize AI and digital asset opportunities, as core reasons for his optimism.

Goldman: Europe Data Center Demand Could Spark ‘Super-Cycle’

While focused on traditional banking, Goldman’s research team also turned its attention to an emerging theme. In a Wednesday (July 15) note, Goldman argued that the rapid buildout of European data centers is creating an opportunity for utilities that can meet the region’s growing electricity needs.^[CNBC]

Goldman’s analysts wrote that their research shows the rise in European electricity bills over the next decade will be far smaller than the market expects. “We estimate annual electricity bill growth of 2% to 4% over the next ten years,” they said. That finding eases investor fears that high infrastructure investment costs could stifle sector growth. Goldman believes this sets the stage for a profit “super-cycle” in utilities.

SpaceX Stock Slumps, IPO Mood Sours

In stark contrast to the Wall Street bank rally, SpaceX (SPCX) shares have been on a wild ride since going public. According to Fortune, the stock fell below its $135 IPO price shortly after a dozen Wall Street firms released nearly unanimous bullish price targets, sliding to around $125.^[Fortune]

SpaceX listed on the Nasdaq in June 2026 in the largest U.S. IPO ever. The stock surged to roughly $211 within three days of trading, but has since cratered, now down nearly 60% from its all-time high. CNBC reported that SpaceX’s sagging stock “dampens the mood for blockbuster IPOs.”^[CNBC] As of Friday, July 17, 2026, SpaceX was trading around $126 intraday — roughly 7% below its IPO price and more than 40% off its all-time intraday high of $225.64.

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