SPX: S&P 500 Dives as Big US Banks Rake In $49bn in Lending Profits

Three banks made close to $50 billion in profits in Q2 because they made more deals. However, higher rates hurt consumers and businesses.

The S&P 500 fell on Friday, even though three of the best banks in the US did really well. The broad-based stock index on Wall Street fell by about 5 points, or 0.2%, after JPMorgan Chase, Citigroup, and Wells Fargo reported earnings for the first time in the second quarter.

The three biggest US banks made a total of $49 billion just from net interest income, which is the difference between the cost of deposits and the interest received on loans. The high number was 30% higher than the same quarter last year, and it shows how big banks profit from the Fed's aggressive effort to raise interest rates.

A group of S&P 500 companies, such as Tesla, Bank of America, Morgan Stanley, and Netflix, will report their numbers next. As usual, the EV leader and the streaming giant both report on Wednesday. Tuesday is when the Q2 financials for the two big banks are due.