The first quarter of 2025 has proven lucrative for major U.S. and European investment banks as they capitalized on heightened market volatility. This surge in trading activity primarily stemmed from increased economic and policy uncertainty, notably in the run-up to U.S. President Trump’s Liberation Day announcement, which included new tariffs on imports. As banks navigate these tumultuous market conditions, they have positioned themselves to take advantage of profitable trading opportunities. Investors should remain attentive to how these dynamics unfold and their implications on investment strategies and decisions moving forward.