Bank of America's profit rose, ⁠as its traders brought in more revenue from spurred client activity in the fourth quarter due to increased volatility in the markets.

Softening U.S. labor demand, ‍political gridlock and concerns over a ‍potential AI-driven stock bubble rattled investors, prompting them to reshuffle their portfolios, ⁠while speculations about the Federal Reserve's rate cuts further boosted trading.

Volatile markets tend to ​benefit investment banks as their trading desks generate higher revenue from increased client activity.

Bank of America's sales and ‍trading revenue rose 10% to $4.5 billion in the fourth ⁠quarter.

The results capped a positive year for the bank. Its shares climbed over 25% in 2025, beating the broader S&P 500 index , but ⁠lagging rivals JPMorgan Chase ​and Wells Fargo.

JPMorgan ⁠reported a fourth-quarter profit on Tuesday that beat Wall Street ‍estimates, helped by a stronger performance by its traders.

The bank reported ‌a net income of $7.6 billion, or 98 cents per share, in the three months ended ⁠December ​31, compared with $6.8 ‍billion, or 83 cents per share, in the year earlier.