Wall Street profits are hitting $90B as AI deals go crazy

The Money Moves

Real talk: Wall Street is absolutely eating right now. According to a new report from New York State Comptroller Thomas DiNapoli, the securities industry pulled in a staggering $45.9 billion in profits during the first half of 2026 alone. That is a 51.3% jump compared to this time last year. If this keeps up, the industry is on track to hit a record-shattering $90 billion by the end of the year.

Why are the vibes so immaculate for these firms? It’s giving AI boom. Investors poured $407 billion into AI venture capital in just six months, which already beat the total for all of 2025. Plus, global dealmaking is at an all-time high, with mergers and acquisitions hitting $2.8 trillion.

What This Means for You

It isn't just about the top-tier suits making bank; the city and state are getting a major bag, too. The industry pumped $7.8 billion into New York City’s budget and $26.3 billion into state coffers this fiscal year. With Wall Street average salaries already sitting at a casual $561,770, the bonus pool is expected to swell even further after a solid 2025 where it hit $49.2 billion.

The Plot Thickens

Before you get too hyped, the report warns that the situation could turn mid-tier fast. We are dealing with stubborn inflation, and the Federal Reserve bumped interest rates to 4% in September, with another hike possibly coming in December.

On top of that, the conflict in Iran is messing with global supply chains, pushing oil to $100 a barrel. DiNapoli also pointed out that the current federal administration has been aggressive with deregulation, slashing staffing at watchdogs like the SEC by over 20%. While that helps banks save on compliance costs right now, it’s lowkey creating systemic risks that could haunt the market later.

Why it matters

Wall Street accounts for roughly 19% of New York City’s total economic output. When the market is this hot, it props up local budgets, but if those "stretched" stock valuations crash like the 1999 dot-com bubble, the ripple effects will be felt way beyond the trading floor.