Goldman Sachs leads Wall St boom amid trading frenzy and deal-making
Wall Street giants were riding high following this week’s round of earnings updates after months market volatility and deal-making helped take trading revenue to record highs.
Goldman Sachs led the surge pocketing $4.3bn in equities trading revenue in the last three months of the year – a record for Wall Street banks.
Meanwhile, the banks trading revenue for fixed income – which focuses on buying and selling debut securities like government bonds – jumped 12.5 per cent to $3.1bn.
“Market volatility and high levels of deal making in 2025 helped burnish Goldman Sachs’ earnings,” said Dan Coatsworth, head of markets at AJ Bell.
“After a fairly muted initial response off the back of a strong run for the share price, a bullish tone from chief executive David Solomon helped give the stock a lift.”
Shares in Goldman have gained over 60 per cent in the last 12 months.
Peer Bank of America enjoyed a similar surge, with equities trading revenue up 23 per cent to $2bn – around $160m higher than expected.
Fixed income trading revenue ticked up 1.5 to $2.52bn, but this came nearly $120m below analysts expectations for the quarter.
Investment banking was also a strong area for Wall Street’s final quarter. Citigroup notched two per cent revenue growth in the segment to $19.9bn despite a wider profit slip. Morgan Stanley’s investment banking revenue soared 47 per cent, reaching $2.41bn as stronger advisory fees and M&A activity bulked up
JP Morgan slips in Wall Street’s bumper week
Despite the buoyant numbers Wall Street juggernaut JP Morgan’s stock took a hit on Tuesday.
The bank’s woes came on the back of increasing its financial cushion for sour loans to $4.7bn, up from $2.6bn the year prior and softer investment banking revenue.
Investment banking fees fell five per cent in the quarter to $2.3bn – a major miss of $120m from estimates.
The hits took a chunk out of the firm’s bottom line, with profit falling to $13bn, a seven per cent drop compared to the prior-year quarter.
The bank also officially announced it will become the new issuer of the Apple Card, a move expected to bring over $20bn in card balances to the Chase platform.
JP Morgan’s shares took a hit on the news falling over four per cent on Tuesday helping drag down the wider S&P 500 index.
During the earnings update, JP Morgan’s chief Jamie Dimon – the world’s most influential banker – warned markers “seem to under-appreciate the potential hazards” that could strike the economy.
Dimon listed “complex geopolitical conditions, the risk of sticky inflation and elevated asset prices” as major warning signs in the economic landscape.