A turbulent period in stock markets is resulting in significant profits for banks' equities traders. According to sources, JPMorgan Chase & Co. is expected to increase its revenue from equities trading by over 30% compared to the previous year, potentially surpassing its previous record of $3.3 billion set four years ago. This trend may also lead to increased profits for Goldman Sachs Group Inc. and Morgan Stanley in the competitive field of stock trading.

The unpredictability in markets triggered by sudden policy changes by President Donald Trump has created some advantages for banks amid economic uncertainties. While hedge funds have faced challenges and merger discussions have been disrupted, banks' equities desks have demonstrated resilience due to their transformation post the 2008 financial crisis. They now focus more on facilitating client trading activity rather than taking substantial risks themselves, leading to increased gains for the banks.

The positive outcomes for banks stand in contrast to the struggles faced by multi-strategy hedge funds like Citadel and Millennium Management, who experienced losses in February and March. Meanwhile, desk analysts have noted a decrease in new transactions globally at the beginning of the year due to uncertainty stemming from geopolitical events.

Prior to 2008, major US banks relied on proprietary trading to generate substantial profits, but regulatory changes shifted their focus towards other revenue streams like providing financing for clients seeking higher returns through leveraged investments.