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- Trading and dealmaking boosted Goldman profits as Wall Street overcame Trump tariff chaos</p>
<p>David HollerithJuly 16, 2025 at 11:39 PM</p>
<p>Profits at Goldman Sachs (GS) surged in the second quarter as the Wall Street giant benefited from a boost in trading and dealmaking, the latest example of how big banks were able to recover from the market chaos triggered by President Trump's tariffs.</p>
<p>"The dealmaking environment has been remarkably resilient," Goldman CEO David Solomon told analysts, and "we are optimistic on the overall investment banking outlook."</p>
<p>Earnings jumped 22% from the year ago quarter, to $3.7 billion, surpassing analyst forecasts. Investment banking fees jumped 26% due largely to advising companies on mergers.</p>
<p>Goldman Sachs CEO David Solomon in 2023. REUTERS/Brendan McDermid (REUTERS / Reuters)</p>
<p>Trading revenue also surged as the volatility triggered by Trump's tariffs turned out to be a boost for Wall Street trading desks. Equities trading climbed 36%, marking the best stock-trading quarter in the company's history.</p>
<p>Two Goldman rivals JPMorgan Chase (JPM) and Citigroup (C) also posted higher dealmaking and trading revenue on Tuesday.</p>
<p>Higher trading provided additional boosts to Morgan Stanley (MS) and Bank of America (BAC), which reported their earnings Wednesday, but investment banking revenue was down slightly for those banks from a year ago. Overall net profits for both banks were up.</p>
<p>"April was just really slow," Bank of America CFO Alastair Borthwick told reporters during a Wednesday morning call. "Our M&A business did fine in terms of the number of deals this quarter, but the deals that we closed were just smaller."</p>
<p>Three months ago, a sense of gloom hovered over the first quarter earnings season as bankers grappled with a halt in dealmaking and the market chaos that followed Trump's April 2 "Liberation Day" tariff announcement, with some warning of "considerable turbulence" and a possible recession.</p>
<p>That gloom has been replaced by measured optimism among most bankers. Some red-hot IPOs and sizable mergers have helped, as have several developments in Washington, D.C., while the Trump administration begins to loosen capital and supervisory rules for big banks.</p>
<p>JPMorgan CEO Jamie Dimon on Tuesday said investment banking activity "started slow but gained momentum as market sentiment improved" and "the U.S. economy remained resilient in the quarter."</p>
<p>"I don't think any of us expected that we'd end up where we are at the end of the second quarter," Citigroup CFO Mark Mason admitted the same day in a call with reporters.</p>
<p>"The economy and markets are generally responding positively to the evolving policy environment," Goldman's Solomon added in a statement Wednesday. "But as developments rarely unfold in a straight line, we remain very focused on risk management."</p>
<p>He made the point of telling analysts that "the ultimate impact on growth from higher tariffs is yet unknown."</p>
<p>David Hollerith is a senior reporter for Yahoo Finance covering banking, crypto, and other areas in finance. His email is [email protected].</p>
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