STORY: Goldman Sachs beat expectations for quarterly profit on Monday, driven by strength in dealmaking and equities trading.
But shares of the bank fell as much as four-and-half percent Monday morning due to weakness in the company's fixed income, currencies and commodities trading.
Revenue from that division fell 10% to $4 billion in the first quarter, hit by a slowdown in interest rate trading, mortgages and credit products.
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Goldman's stock recovered some ground by midday after CEO David Solomon expressed optimism about the outlook for dealmaking despite the volatility caused by the war in Iran and concerns around AI-driven disruption.
The bank's equities trading business had a record quarter, with revenue from trading intermediation and financing rising 27% to $5.3 billion, as volatile markets - roiled by the Iran war and rising oil prices - prompted clients to reassess portfolios and hedge downside risks.
:: Unilever
:: McCormick
The investment bank also consulted on some of the first quarter's biggest deals, including Unilever's planned merger of its food business with McCormick, and Equitable's proposed tie-up with fellow insurer Corebridge.
Those helped propel Goldman's investment banking fees for the quarter to more than $2.8 billion, a 48% jump from one year ago.
