HomeFinanceThe year that Wall...

The year that Wall Street got its swagger back

When Goldman Sachs (GS) CEO David Solomon got an invite to watch Donald Trump triumphantly ring the opening bell at the New York Stock Exchange earlier this month, there was no question he would go.

Not only was the next US president coming to Wall Street but he was giving Solomon, Citigroup (C) CEO Jane Fraser, and a host of other corporate executives a chance to meet and mingle with a chunk of his cabinet nominees on the trading floor.

Minutes ahead of Trump’s bell ringing, the crowd broke into a cheer: “U-S-A, U-S-A.”

Solomon and other big bank bosses certainly have a lot to cheer about as 2024 comes to an end.

Dealmaking and trading are surging, interest rates are considerably lower than they were a year ago, and the prospect of looser banking rules feels possible with a new Republican administration about to take over the White House. Bonuses are also expected to be up once checks are cut in the new year.

No bank is better positioned to take advantage of this shift than Goldman, which relies heavily on the Wall Street-centric businesses of investment banking, trading, and wealth management. Its stock has surged since the election of Trump, and over the past 12 months it is up 50%.

But it’s not the only bank surging higher. Since the election, the stocks of JPMorgan Chase (JPM) and Bank of America (BAC), Citigroup, Wells Fargo (WFC), and Morgan Stanley (MS) have risen between 5% and 12% as of Friday.

“A lot of bankers, they’re like dancing in the street,” JPMorgan Chase CEO Jamie Dimon said days after Trump won the election.

JPMorgan, the nation’s biggest bank, is among those having a great year. Analysts expect the bank to break another record for highest profits in US banking history. Investment banking revenue is expected to be up 45% in the fourth quarter.

The hope is this current rally could be just the beginning of a bull run banks haven’t seen in over a generation.

Some predict 2025 will be a repeat of 1995, when bank stocks surged after Federal Reserve rate cuts, a soft landing engineered by then-central bank Chair Alan Greenspan and a deregulation stance taken by then-President Bill Clinton.

A federal law signed by Clinton in 1994 eliminated restrictions that stopped banks from opening branches across state lines, setting the stage for a period of consolidation that would eventually give rise to coast-to-coast empires amassed by JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup.

In 1995, an index tracking the banking sector finished up more than 40%, outperforming the S&P 500 (GSCP). That outperformance would hold for two more years.

yahoofinance

- A word from our sponsors -

spot_img

Most Popular

More from Author

All About Shelley Long’s Daughter Juliana Tyson Kissick

Actress Shelley Long, most well-known for her role as Diane Chambers...

Holiday Touchdown: A Bills Love Story Coming to Hallmark

A new Holiday Touchdown movie is set to arrive on screens this...

Johnny Mathis, 89, Retiring from Performing Due to Age and ‘Accelerated’ Memory Issues

Johnny Mathis is retiring from live performing. On Wednesday, March 26, Mathis’ Facebook...

- A word from our sponsors -

spot_img

Read Now

Fans Praise Kelly Clarkson’s Makeup-Free Look: ‘Thank You for Being Normal’

In a sneak peek of the Thursday, March 27, episode of Kylie Kelce’s Not Gonna Lie podcast, the three-time Grammy winner, 42, appeared as a guest — seemingly without a drop of make-up. The Kelly Clarkson Show host went for a relaxed vibe, wearing a gray sweatshirt and...

All About Shelley Long’s Daughter Juliana Tyson Kissick

Actress Shelley Long, most well-known for her role as Diane Chambers in the TV sitcom Cheers, has one child: a daughter named Juliana Tyson Kissick. Juliana is the daughter of Shelley and Bruce Tyson, a securities broker. Shelley and Bruce got married in 1981 and had Juliana on March...

Holiday Touchdown: A Bills Love Story Coming to Hallmark

A new Holiday Touchdown movie is set to arrive on screens this holiday. On Thursday, March 27, Hallmark Media, NFL and Skydance Sports announced their new original film, Holiday Touchdown: A Bills Love Story, which will be premiering during Hallmark Channel’s 16th annual Countdown to Christmas. Following the release of Holiday Touchdown: A Chiefs...

Johnny Mathis, 89, Retiring from Performing Due to Age and ‘Accelerated’ Memory Issues

Johnny Mathis is retiring from live performing. On Wednesday, March 26, Mathis’ Facebook account announced that the 89-year-old crooner will stop performing live, due to “age and memory issues, which have accelerated.” The singer will continue to perform three more shows on his “Voice of Romance Tour” before his final performance...

Chanel Ties Paris Fashion Week Up With a Bow

Long before the “bow girl,” in all her coquettecore glory, became a fashion archetype, there was Chanel. This morning at Paris Fashion Week, the French house wrapped the Grand Palais in a massive black ribbon to celebrate one of its most beloved motifs. (One which dates back to the...

Miu Miu Was Cool-Girl Catnip

Miu Miu has a knack for bringing It girls not just to the front row, but onto the runway. Today at Paris Fashion Week, the former group included Sydney Sweeney, Nara Smith, Alix Earle, and Renée Rapp. (And at least one It guy: A$AP Rocky.) At the Palais D’Iéna, the walls had...

Saint Laurent Solidifies the Season of the Big Shoulder

There was one big thing that united Saint Laurent’s winter 2025 collection: huge, powerful shoulders. Models paraded around the perimeter of a large oval onyx floor wearing every single version of the massive shoulder. They appeared on ’80s power-suit-style dresses in vibrant colors, oversized outerwear, and even...

Reading Festival organisers quizzed over waste

The organisers of one of the UK's largest music festivals have been grilled over the tonnes of waste and tents that are left behind each year. Reading Festival attracts tens of thousands of people to Little John's Farm in the Berkshire town on the August bank holiday weekend...

Ray Meade: ‘When they told me I had MS, I thought I was done’

Like most of us, guitarist Raymond Meade had a slow and quiet summer in 2021. The pandemic had put a stop to live touring with Ocean Colour Scene, with whom he had played since 2016. And without recording studios, he was unable to continue with his successful solo career. But...

Oasis sale ‘may have misled fans’ says watchdog

Ticketmaster "may have misled Oasis fans" with unclear pricing when it put their reunion tour on sale last year, the UK's competition watchdog has said. The Competition and Markets Authority (CMA) said the company may have breached consumer protection law by selling "platinum" tickets for almost 2.5 times...

Window cleaner in quest to confirm priceless Shakespeare portrait

Window cleaner Steven Wadlow has spent more than a decade trying to prove he is in possession of a priceless, authentic Shakespeare portrait. His quest is now being told in a Netflix documentary. What is the story behind the find? Steven, who lives in Aylesbury, Buckinghamshire, said his...

What is the Signal messaging app and how secure is it?

The free messaging app Signal has made headlines after the White House confirmed it was used for a secret group chat between senior US officials. The editor-in-chief of the Atlantic, Jeffrey Goldberg, was inadvertently added to the group where plans for a strike against the Houthi group in...