At last, Wall Street has something to cheer
Consumer banks, on the other hand, are starting to suffer
![People walk through the Financial District near the New York Stock Exchange.](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240720_FNP503.jpg)
Capital markets are twitchy. When interest rates spiked in 2022, their response was fast. Stocks plunged; bosses deferred plans to go public, issue stock and buy rivals. Sharp-suited bankers suddenly found their calls going unanswered. By contrast, the economy adapts slowly. As inflation climbed, people did not cut back much on spending, instead using their credit cards more. With the labour market healthy, they did not struggle to repay debt as rates rose. The result was a bonanza for consumer banks. They raked in ever more interest from resilient borrowers as defaults and delinquencies stayed low.
Explore more
This article appeared in the Finance & economics section of the print edition under the headline “Main street sags”
Finance & economics July 20th 2024
- Stocks are on an astonishing run. Yet threats lurk
- Why investors have fallen in love with small American firms
- At last, Wall Street has something to cheer
- Japan’s strength produces a weak yen
- China’s leaders face miserable economic-growth figures
- YIMBY cities show how to build homes and contain rents
- Americans are wrong to wish for an era of stable bipartisanship
More from Finance & economics
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/media-assets/image/20240907_FNP501.jpg)
Will the Fed factor turbocharge commodity prices?
As policymakers prepare to cut interest rates, traders (and presidential candidates) hold their breath
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/media-assets/image/20240831_FND001.jpg)
Can Japan’s zombie bond market be brought back to life?
Ueda Kazuo begins on a dangerous mission
![](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/media-assets/image/20240831_FNP504.jpg)
The plasma trade is becoming ever-more hypocritical
Reliance on America grows, as other countries clutch their pearls
Are American rents rigged by algorithms?
That is what Department of Justice prosecutors allege
Inflation is down and a recession is unlikely. What went right?
A few years ago, nobody thought that a soft landing was possible
How Vladimir Putin hopes to transform Russian trade
He believes the country’s future lies with China and India. What could go wrong?