Goldman Sachs Surges 72% in Equity Trading Amid JPMorgan Bond Desk Slump

Goldman Sachs Equity Trading Revenue Surges 72% Year Over Year

Goldman Sachs' equity trading revenue surged 72% year over year to $6.44 billion in the third quarter, while JPMorgan Chase’s bond desk missed estimates by over $500 million. Higher rates did not lift bond trading, and experts attribute the disparity to Goldman's strong equities performance, driven by AI trade activity.

JPMorgan Bond Desk Misses Estimates

JPMorgan's bond desk generated $5.0 billion, up 49%, but fixed income fell 4% to $5.4 billion, Quartz reported. Bloomberg noted it was the bond desk's first revenue decline in more than two years. Chan blamed expectations of prolonged high rates, which kept clients on the sidelines in September.

Market Implications

New York Fed President John Williams said Tuesday that one more rate hike this year looks appropriate. He does not expect another in 2027, Bloomberg reported. Most Fed officials backed another 2026 rate hike, according to the latest minutes. J.P. Morgan expects one more December hike as well. Higher rates still favor lenders. JPMorgan's net interest income, the gap between loan earnings and deposit costs, rose 12.8% to $27.04 billion, Forbes reported.

Seasonal Declines Ahead

Trading is a different business, and Chan expects seasonal declines in fourth-quarter trading revenue. Equities drove trading growth at both banks this quarter. That run now depends on the AI trade, which saw a chip stock selloff Tuesday, according to Bloomberg.