Bank of America (BAC) is trading higher as investors react to a first-quarter results-driven reset in expectations: profit came in above forecasts as market volatility boosted trading desks and interest income held up better than feared. Equities trading rose 17% to a record $2.2 billion, helping drive a 9% increase in total trading revenue, while net interest income increased 3% to $14.4 billion.

For the quarter ended March 31, Bank of America posted earnings of $7.4 billion, or $0.90 per share, versus $6.7 billion, or $0.76 per share, a year earlier. The company also maintained its prior net interest income trajectory, reiterating an expectation to reach $15.5 billion to $15.7 billion by the fourth quarter and indicating it expects full-year NII growth of 6% to 7%.

The upside surprise in markets revenue is colliding with elevated uncertainty tied to trade-policy headlines and dealmaking caution. Investment banking fees were reported at $1.5 billion, down from the prior quarter and slightly lower year over year, reflecting a slower backdrop for M&A and IPO activity even as trading benefits from volatility. Credit costs also remain a watch item, with provisions for credit losses reported at $1.5 billion in the quarter.

The next catalyst is whether the strength in trading and steadier deposit costs can persist if volatility fades, while net interest income progresses toward the bank’s fourth-quarter run-rate target. Investors will also monitor any sustained slowdown in capital markets activity, as well as how management calibrates credit reserves and expense discipline if policy uncertainty pressures client activity.