JPMorgan unexpectedly achieved growth in its investment banking business, indicating that the shadow of tariffs may be dissipating.

J.P. Morgan's investment banking business unexpectedly grew in the second quarter, indicating that investment banking activities may be experiencing the beginning of a recovery after widespread caution following U.S. tariff policies. The bank stated on Tuesday that investment banking revenue increased by 7%, compared to analysts' previous expectations of a 14% decrease. The bank recorded its best second quarter performance ever in stock trading, and fixed income trading also exceeded expectations. CEO Jamie Dimon stated in the announcement that "investment banking activities started slowly, but gained momentum as market sentiment improved." The better-than-expected performance of the investment banking sector provides a glimpse into the impact of the Trump administration's inconsistent policies on tariffs, while also offering a new perspective on the health of American consumers and businesses.