At last, Wall Street has something to cheer

Capital marketsipoapr are twitchy. When interest rates spiked in 2022, their response was fast. Stocks plunged; bosses deferred plans to go public, issue stock and buy rivals. Sharp-suited bankers suddenly found their calls going unanswered. By contrast, the economy adapts slowly. As inflation climbed, people did not cut back much on spending, instead using their credit cards more. With the labour market healthy, they did not struggle to repay debt as rates rose. The result was a bonanza for consumer banks. They raked in ever more interest from resilient borrowers as defaults and delinquencies stayed low.This mixture—no s, but plenty of —has been the status quo for two years. Now, however, it appears to be over. When second-quarter earnings were reported by America’s largest lenders between July 12th and 16th, it became clear that, at long last, investment bankers are bustling with business once more, just as consumers are starting to struggle.