Goldman Sachs equity trading revenue surged 72% year over year to $6.44 billion in the third quarter. JPMorgan Chase’s bond desk, meanwhile, missed estimates by more than $500 million.

Higher rates did not lift bond trading, even with the 10-year Treasury yield near 5.2% on Tuesday, according to Bloomberg.

Why Did Goldman Sachs Equity Trading Soar While Bond Desks Stalled?

Goldman’s equities desk generated $6.44 billion, almost twice the $3.47 billion from fixed income. Forbes reported that the fixed income figure dipped 1% year over year. The division housing both desks grew 32% to $13.46 billion.

Herman Chan, a senior US banks analyst at Bloomberg Intelligence, described the gap across the sector.

“Goldman was the gold standard for the third quarter.”
Herman Chan, Bloomberg

JPMorgan’s equities desk brought in $5.0 billion, up 49%, while 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.

JPMorgan’s overall revenue and net income also missed analyst expectations, Forbes noted.

Can Equity Desks Keep Winning if Rates Stay Elevated?

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.

Forbes saw no broad credit deterioration. Wells Fargo, however, set aside $1.03 billion for loan losses, up from $681 million a year earlier.

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.

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