Investment banking drives Goldman Sachs’ $5.5 billion profit as treasury yield tanks US stocks

Goldman Sachs recorded a US$5.5n profit, as the health of the economy in the US gradually gets back to normal. 

Both the Dow Jones average and the S&P 500 suffered sharp declines, losing the upward momentum gained during trading hours on Tuesday, while the Nasdaq composite also closed in the negative. This fall in the major index could be connected to the rise in yields.

Goldman Sachs has continued to expand its reach in the investment banking market, recording impressive revenue figures as it progresses on that path. Most of the increase in revenue is attributed to the stellar performance of the bank’s investment banking and asset management units, both recording all-time highs with respect to revenue.

The lender’s net profit from the second quarter of 2021 hit US$5.5bn, putting its share value at $15.02 per unit, on Tuesday. The bank has seen a marked increase, especially compared to the US$373m posted in the second quarter of 2020.

Though Goldman Sachs shares started Tuesday trading session at a low point, falling 2%, the general health of the firm’s stock has risen by over 40% in 2o21, ranking second on the list of Dow’s best-performing stocks this year.