Several bank executives, particularly at JPMorgan Chase and Wells Fargo, expressed concerns about the macroeconomic outlook for 2025 due to the uncertainty surrounding the Trump administration's tariffs.

Morgan Stanley analysts cut their outlook on large and midcap banks, citing worries that higher tariffs increase the risk of a significant GDP slowdown and recession, potentially stifling a rebound in deal-making.

They anticipate bank executives will likely temper their revenue outlooks given market volatility and uncertainty related to trade.

Morgan Stanley also no longer expects a Federal Reserve rate cut in June, suggesting that tariff-induced inflation could keep the Fed on the sidelines.

Analysts predict that tariffs could lead to a deterioration of asset prices and worsen the outlook for consumer spending.

Goldman Sachs analysts indicated that while tariffs might temporarily boost manufacturing employment, they could lead to a net negative impact on overall U.S. employment due to higher input costs for other industries.

The KBW Bank Index (.BKX) has reportedly fallen significantly since the announcement of the tariffs, reflecting investor concerns.