Shares of Goldman Sachs advanced 1.6% to $943.62 in after-hours trading Monday, buoyed by a broader market rebound and a bullish long-term forecast for initial public offerings from the bank's own analysts.
Markets Rebound Ahead of Data Deluge
U.S. equities recovered from recent losses, with the S&P 500 gaining 0.58% and the Nasdaq Composite climbing 1.02%. The 10-year Treasury yield retreated to approximately 4.20%. The move higher was attributed by some advisors to retail investors buying the dip, setting the stage for a week packed with critical economic releases.
Goldman's $160 Billion IPO Projection
Goldman Sachs analysts released a report projecting that U.S. IPO proceeds could surge to a record $160 billion in 2026, a fourfold increase from recent levels. The number of offerings could climb to 120, with high-profile names like SpaceX, OpenAI, and Anthropic potentially entering the public markets. However, the analysts cautioned that continued stock market volatility and a concentration of software companies in the IPO pipeline could pose risks to this optimistic outlook.
IPO activity is a key revenue driver for investment banks like Goldman, which earns fees for advising and underwriting these deals. The forecast has reignited focus on the lucrative fees tied to a resurgence in equity capital markets.
Banking Sector Shows Mixed Performance
Other major financial institutions saw varied after-hours movement. Morgan Stanley shares gained 1.3%, while JPMorgan Chase and Bank of America edged slightly lower. The competition for future IPO mandates is intensifying, with Morgan Stanley recently reinstating a veteran tech dealmaker to lead its investment banking efforts, according to reports.
Economic Data in Focus
Investor attention now turns to key U.S. economic indicators scheduled for release later this week, which will heavily influence interest rate expectations. The January Employment Situation report is due Wednesday, followed by the Consumer Price Index for January on Friday. Analysts are closely watching for signs of cooling in the labor market and inflation trends. A White House economic adviser suggested that softer job numbers should not cause panic, citing productivity gains.
Market participants are aware that hotter-than-expected inflation data or a spike in yields could quickly dampen the IPO revival, causing companies to delay listings and banks to see risk appetite evaporate.
