Goldman Sachs and Morgan Stanley Report Strong Q4 Earnings Driven by Investment Banking Growth

Goldman Sachs and Morgan Stanley reported strong fourth-quarter earnings, surpassing analyst expectations due to robust investment banking and trading activities. Goldman Sachs set a Wall Street record with $4.31 billion in equities-trading revenue and raised its dividend, while Morgan Stanley saw a 47% increase in investment banking revenue, driven by dealmaking and debt underwriting. Both firms cited favorable market conditions, including AI enthusiasm and anticipated Federal Reserve rate cuts, as factors boosting mergers and acquisitions and capital markets activity.