Goldman Sachs delivers contrarian take on the economy

Forget each the recession chatter. Goldman Sachs (GS) CEO David Solomon feels the economical backdrop for 2026 looks strong.

In a caller CNBC interview, the seasoned banker feels the macro setup is “quite good,” pointing to robust fiscal support, unthinkable AI-driven superior investment, and a much conducive concern environment.

Moreover, Solomon said strategical enactment is picking up astatine an awesome pace, with businesses imagining large deals again. IPO discussions are heating up nicely, portion immoderate offerings, helium suggests, could beryllium unprecedented successful size.

Clearly, that’s a large displacement successful code from the antagonistic chatter we’ve seen astir the system lately.

Also, successful a caller nonfiction I wrote, Bank of America CEO Brian Moynihan echoed that aforesaid optimism from a user angle.

According to Moynihan, BofA’s information showed that January enactment ran astir 5% above past year, arsenic spending continues to ascent crossed assorted income brackets.

Taken together, the connection from Wall Street’s apical level is that contempt the uneven growth, it’s inactive precise overmuch alive.

The large banks are coming disconnected a power-packed net stretch.

Industry bellwethers specified arsenic Goldman Sachs, JPMorgan, and peers have, for the astir part, shown that they proceed to support fees ticking up, support margins, and efficiently negociate recognition hazard contempt a testy economy.

That’s indicative of steadfast pipelines and lawsuit enactment that person held up a batch amended than the headlines presently suggest.

More Wall Street

• Top expert bets these stocks volition boost your portfolio successful 2026

• Billionaire Dalio sends 2-words connected Fed prime Warsh

• Bank of America sends quiescent informing to banal marketplace investors

Goldman’s latest quarterly study is simply a cleanable example.

The slope posted a comfy bushed connected net power, adjacent with a circumstantial resistance linked to its exit from the Apple Card business.

Put together, the halfway instrumentality looked solid, and a impermanent accounting plaything made the top-line fig look a batch softer than it truly was.

• EPS:$14.01 versus $11.65 expected (beat); up from $11.95 a twelvemonth ago.

• Revenue:$13.5 billion vs $13.9 cardinal expected (miss); down versus $13.9 billion past year.

• Apple Card drag: Platform Solutions gross swung to -$1.68 billion owed to a $2.26 cardinal markdown tied to the pending Apple Card portfolio sale.

• Credit costs: Provision was a +$2.12 cardinal benefit (reserve release), including a $2.48 cardinal reserve reduction tied to the Apple Card transfer.

• Engines inactive running: Global Banking & Markets gross $10.4 cardinal (+22% year-over-year); concern banking fees $2.58 billion (+25% year-over-year); equities $4.31 cardinal (+25% year-over-year), portion FICC jumped +12% twelvemonth implicit twelvemonth despite a quarter-over-quarter dip.
  Source: Seeking Alpha