★Goldman Sachs is set to report first-quarter earnings — here's what Wall Street expects

The Big Market Report Take

Goldman Sachs (GS) is gearing up to report its first-quarter earnings, and the Street is keenly focused on whether its trading desks capitalized on the AI-driven market activity that characterized the start of the year. This matters significantly because strong trading results, particularly in fixed income, currencies, and commodities (FICC) and equities, could signal a broader resurgence in investment banking and capital markets, potentially boosting the firm's overall profitability and investor confidence in the financial sector. For investors, the key thing to watch will be the granularity of their trading revenue breakdown and, perhaps more importantly, management's outlook on deal flow and investment banking pipelines for the remainder of 2024. If they can translate market volatility into consistent revenue growth, it bodes well for the entire financial industry.