Goldman Sachs, Morgan Stanley Signal Optimism Amid Rising Deal Backlogs, Best Q3 Trading Gains, and $60 Billion Fundraising Goals

Goldman Sachs CEO David Solomon reports significant pent-up demand from clients and a rise in deal backlog, signaling optimism for future deal-making. The firm reduced its principal investment portfolio by $1.7 billion to $10.9 billion in Q3 and expects alternative fundraising to exceed $60 billion in 2024. Goldman notes that the US economy continues to be resilient. Morgan Stanley CEO Ted Pick echoes this optimism, anticipating increased investment banking activity in the coming quarters and expressing bullishness on deals and IPOs. Morgan Stanley posted the best third-quarter trading gains on Wall Street, with the interest rate environment serving as a tailwind for trading. CFO Sharon Yeshaya stated that the upcoming US presidential election will remove key uncertainties holding deals. Bank of America CEO Brian Moynihan observes that US consumers continue to spend and fuel the economy, contributing to a positive economic outlook. Bank of America topped analyst estimates for third-quarter profit and revenue on better-than-expected trading results.