Due to increasing interest rates and a robust economy, major U.S. banks reported increased profits, but consumer spending concerns, credit card losses, and office commercial real estate posed risks.

Investors dismissed the earnings of JPMorgan Chase, Wells Fargo, and Citigroup, despite the fact that they were the finest in a while.

At JPMorgan Chase and Wells Fargo, net interest income increased significantly, bolstering earnings.

Nonetheless, Citigroup’s trading issues outweighed the gains.

Other Wall Street-reliant institutions, such as Goldman Sachs and Morgan Stanley, could also be affected by this headwind.

BlackRock exceeded second-quarter profit forecasts, but cash inflows remained stagnant.

State Street exceeded profit projections for the second quarter after interest income increased 18% year-over-year but decreased 10% quarterly due to lower average non-interest bearing deposit balances.

Substantial bank deposits have decreased as consumers pursue higher interest rates, with State Street down 12%, JPM up 0.6%, Citi down 4%, BlackRock down 1.5%, and Wells down 0.2%.

The U.S. economy remains robust, but consumers are gradually depleting their cash reserves.