Oct 16, 2024 - Economy
Wall Street dealmaking is back
Add Axios as your preferred source to
see more of our stories on Google.
Morgan Stanley today joined the parade of strong earnings from Wall Street banks.
Why it matters: Taken together, the results over the last few days from Goldman Sachs, JPMorgan, Bank of America, among others, point to a long-awaited pickup in dealmaking for U.S. corporations.
Between the lines: Businesses have resumed tapping equity and debt markets for cash.
- Merger and acquisition activity, though far from humming, also picked up. Both trends led to a surge in investment banking fees across Wall Street last quarter.
- And trading revenue, particularly in equities, picked up far more than expected over the last three months.
The big picture: The Fed's half-point rate cut last month kicked off a new cycle of policy easing that has kindled optimism from bank executives this week on a sustained rebound in economic activity.
- "My recent conversations with clients have been quite constructive," Goldman Sachs CEO David Solomon told analysts yesterday.
