Positive.

From CNBC: 2025-01-16 15:15:56

Top American investment banks have reported record-breaking quarters, with JPMorgan Chase seeing revenue surge 21% to $7 billion in the fourth quarter, and Goldman Sachs’ equities business generating $13.4 billion for the full year. This surge was fueled by increased trading activity around the U.S. election and a pickup in investment banking deals.

The return to a favorable environment for traders and bankers on Wall Street was driven by a more accommodating Federal Reserve and the election of Donald Trump. This has boosted banks’ performance, with JPMorgan, Goldman Sachs, and Morgan Stanley surpassing expectations for the quarter.

Morgan Stanley CEO Ted Pick predicts a surge in merger deals as U.S. corporations gain confidence in the business environment, anticipating lower corporate taxes and smoother approvals on mergers. The deal pipeline is the strongest it’s been in years, with growing backlogs of merger deals for investment banks.

Capital markets activity, including debt and equity issuance, has been recovering, but the lack of normal levels of merger activity has been a missing driver for Wall Street. Multibillion-dollar acquisitions are expected to drive high-margin transactions, generating wealth for executives and creating opportunities for various financial services.

Morgan Stanley CEO Ted Pick is excited about the revival of the IPO market, which is expected to pick up in the coming year. CEO David Solomon of Goldman Sachs also highlighted a significant shift in CEO confidence and increased appetite for deal-making, supported by an improving regulatory backdrop.

Overall, the future looks profitable for Wall Street’s dealmakers and traders as they anticipate a surge in merger deals, IPOs, and other transactions in the coming year, driven by a favorable business environment and increased corporate confidence.

Read more: Wall Street banks see deal activity picking up, even after record results