Top executives at major U.S. banks have signaled that the extraordinary trading revenue gains that propelled their second-quarter profits are unlikely to continue at the same pace in the third quarter. This development suggests the recent surge in banks’ market businesses may be moderating after a period of exceptional performance.

Speaking at an industry conference this week, Brian Moynihan, CEO of Bank of America, projected that the bank’s sales and trading revenue would remain “flat” in the third quarter. His comments prompted a 5 percent decline in Bank of America’s shares, which also weighed on the stock prices of other leading financial institutions.

While Moynihan adopted a cautious tone, other executives expressed a more optimistic outlook. JPMorgan Chase expects trading revenue growth in the “high teens” percentage range compared with the same quarter last year, and Citigroup anticipates a mid-single-digit increase in its markets unit. Nonetheless, these forecasts demonstrate a notable slowdown relative to the second quarter’s performance.

“Second quarter of this year was pretty exceptional in markets,” said Daniel Simkowitz, co-president of Morgan Stanley. “And I think it’s safe to say, 3Q is no 2Q.” Similarly, JPMorgan co-president Doug Petno described an expected “seasonal sequential decline” in markets revenue following the record results posted in the prior quarter.

In the April to June period, trading revenue across JPMorgan, Goldman Sachs, Citigroup, and Bank of America surged 72 percent year on year to $19.3 billion. This spike was driven in part by a wave of investment in AI-related stocks, heightened activity in Asian semiconductor sectors, and speculation surrounding SpaceX’s planned large initial public offering, all of which helped fuel sharp price movements in equity markets.

However, some of these trends have shown signs of fading. Moynihan noted a slowdown in financing activity in Asia and a reduced appetite for prime broking services—lending to hedge funds, trading firms, and family offices—in the region. At the same time, Goldman Sachs CEO David Solomon reported that while the firm’s equities business “continues to be very strong,” revenue from fixed income, currencies, and commodities was expected to be “a little bit softer.” Goldman’s shares have declined roughly 7 percent over the past week.

Despite the anticipated easing of momentum, Wall Street banks maintain a generally positive medium- to long-term outlook for their markets businesses. Petno pointed to “much more significant demand” for prime broking and structured financing as ongoing structural trends. Solomon added that market growth over the next decade is unlikely to be linear but affirmed confidence that rising market capitalization globally will drive increased financing opportunities for their clients.

Wall Street firms plan to release official earnings for the third quarter, ending September, in the coming weeks, providing further insight into how these dynamics may evolve.