Jefferies plunges on profit miss, drags down rival investment banks

Shares of investment bank Jefferies JEF.N fall ~9% to $54.99, with the sell-off spilling into the broader investment banking sector

Co's Q1 profit missed Wall Street estimates after market on Wednesday as bond trading weakened and deals were stalled due to uncertainty sparked by shifting U.S. trade policy and geopolitical turmoil

JEF's revenue from equity underwriting declined 39% in the reported quarter

While some deals have moved forward, geopolitical tensions and rapidly evolving U.S. policy under President Donald Trump's administration have dampened expectations for a broader rebound

Last year's "momentum has been slowed by the uncertainty that has arisen as a result of the policy statements and actions of the government and geopolitical events," Jefferies President Brian Friedman said in an interview

The results offer investors an early glimpse at how Wall Street's investment banking units may fare in the first half of 2025

Industry giants Morgan Stanley MS.N and Goldman Sachs GS.N - due to report Q1 results next month - last down 2.1% and 1.7%

Boutique investment banks Evercore EVR.N falls 2.2%, while Lazard LAZ.N and Moelis MC.N decline 2.5% each

JEF reported a profit of 57 cents per share in Q1, missing estimates of 94 cents according to data compiled by LSEG

Stock down ~23% YTD, up to last close