US Stock Market: Wall Street investment banking revival gains momentum as IPOs, M&A fuel deal boom

Wall Street's largest banks reported a 45% jump in investment banking fees in Q2 from a year earlier, with Morgan Stanley leading the percentage increase. US companies raised a record $104.8 billion through IPOs in the quarter, while global M&A volumes crossed $3 trillion in 2026, rising over 40% year-on-year, driven largely by AI-related transactions. Potential mega listings from Anthropic and OpenAI, each estimated at about $1 trillion, are expected to further fuel deal activity, with Morningstar suggesting the growth cycle could last until 2028 or later.