(Reuters) -Jefferies' first-quarter profit missed Wall Street estimates on Wednesday as bond trading weakened and stock market deals were stalled due to uncertainty sparked by shifting U.S. trade policy and geopolitical turmoil.

The results offer investors an early glimpse at how Wall Street's investment banking units may fare in early 2025, as equity underwriting struggles with market volatility and uneven demand for IPOs, follow-on offerings and private placements.

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 in dealmaking, prolonging a three-year slowdown.

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 investment bank's revenue from equity underwriting declined 39% in the reported quarter.

Its shares were last down 4% in extended trading after results.

Jefferies' capital markets business, which houses its trading desks, reported revenues of $698 million, down nearly 4% versus a year earlier.

Fixed-income net revenues decreased 18% to $289 million due to a strong year-ago quarter and lower volatility translating to a decline in overall volumes, Jefferies said.

In a bright spot, market share gains helped the bank report a 17% jump in revenues from advisory. It also posted a 54% surge in debt underwriting revenue, together lifting investment banking performance by 7%.

"Periods of change and uncertainty generally reduce confidence and visibility until we are able to absorb what is happening and form a perspective," Friedman said.

"Predominantly, people are viewing this as a moment to take stock, not a moment to draw lasting conclusions," he said, noting that business executives still saw the Trump administration as pro-business and likely to reduce regulation.

Among deals in the quarter, Jefferies was a bookrunner on cybersecurity firm SailPoint's $1.4 billion U.S. IPO and served as a financial adviser to Intra-Cellular Therapies on its $14.6 billion acquisition by Johnson & Johnson. 

Larger rivals Morgan Stanley ( MS ), Goldman Sachs ( GS ) and JPMorgan Chase ( JPM ) are set to report earnings next month, offering a broader view of Wall Street's dealmaking recovery.

While some Wall Street banks have already started cutting jobs, Jefferies' staffing is likely to stay stable after it went on a hiring spree in recent years.

Jefferies reported a profit of 57 cents per share in the three months ended February 28. Analysts on average had expected 94 cents per share, according to estimates compiled by LSEG.