American investment banks reported record-breaking fourth-quarter results driven by surging trading activity around the U.S. election and a rebound in investment banking deals. Analysts cite renewed corporate confidence fueled by hopes for lower taxes and regulatory easing under Donald Trump’s presidency. Capital markets activity grew 25% from 2023 lows, and analysts predict continued earnings growth in 2025. Goldman CEO David Solomon noted that IPO activity is also set to revive, citing increased CEO confidence and regulatory improvements. Wall Street's outlook remains optimistic as deal-making momentum builds.
