Goldman Sachs anticipates Trump Bump as potential policy changes spark optimism for capital markets growth
Updated: Sep 4
Goldman Sachs is positioning for a fresh wave of dealmaking and capital markets activity as Wall Street bets that Donald Trump’s return to the White House will usher in a more business-friendly regulatory environment and stronger corporate activity.
Shares in Goldman had climbed about 55% in 2024 by early December, putting the investment bank on course for its strongest annual gain in more than a decade as investors anticipated a revival in mergers, acquisitions and equity issuance.
Chief executive David Solomon said the incoming administration could create conditions that support both economic growth and Goldman’s core businesses.
At the Reuters NEXT conference in New York, Solomon said, "I am quite optimistic that this administration is going to run a very, very pro-growth agenda."
Goldman has already benefited from a rebound in investment banking, with stronger activity across advisory, underwriting and trading helping restore momentum after a period of subdued dealmaking. The bank has also refocused on its traditional Wall Street businesses after scaling back its consumer banking ambitions.
Solomon expects transaction volumes to strengthen further in 2025 as corporate executives become more confident about pursuing major deals.
Referring to activity in equities and mergers and acquisitions, Solomon said, "I think in 2025 we will certainly be at 10-year averages; we might even be ahead of 10-year average."
Expectations of lighter regulation under Trump have fuelled optimism that previously delayed transactions could return to the market, benefiting advisory-heavy institutions such as Goldman. However, Solomon cautioned that the administration’s approach to trade, immigration, energy and taxation would determine how supportive the overall policy mix ultimately proves.
With deal pipelines rebuilding and investor confidence strengthening, Goldman enters 2025 positioned to capitalise on any renewed surge in corporate transactions and capital markets activity.