Wall Street investment banks' second-quarter fee income expected to hit a four-and-a-half-year high, with SpaceX IPO as a key driver

According to data compiled by Bloomberg, the five largest U.S. investment banks are expected to generate approximately $11.1 billion in investment banking fees in the second quarter of 2026, a 27% year-over-year increase and the highest level since 2021. The growth is primarily driven by the SpaceX IPO and a resurgence in large-scale M&A transactions. Notably, the SpaceX IPO contributed approximately $500 million in fees to the 23 underwriting banks, setting a historical record for public offerings, with Goldman Sachs and Morgan Stanley each earning about $100 million.

Additionally, fee income from M&A advisory services at the five major banks is expected to rise by approximately 30% year-over-year, exceeding $4 billion. The market believes that future listing plans of major tech companies such as SpaceX, OpenAI, and Anthropic could further drive growth in Wall Street's investment banking business. (Financial Times)