Wall Street is presenting the argument that the worst is behind them, and investors seem to concur.

During the past week, top bank executives have been pointing out positive signs in dealmaking and trading, despite some of them recording another disappointing quarter.

Morgan Stanley’s CFO, Sharon Yeshaya, mentioned that sentiment and activity improved towards the end of the quarter, with encouraging signs emerging across their businesses, Yahoo Finance reported.

Citigroup’s CFO, Mark Mason, noted that they are witnessing green shoots in debt issuance as clients gain more conviction about the direction of interest rates.

Goldman Sachs’ CEO, David Solomon, stated that June showed improvement compared to earlier in the quarter, and he has noticed a more positive “risk-on sentiment” in July.

Investors were pleased with the news, and as a result, the stocks of most major banks saw an increase this past week.

Following the release of its results, Morgan Stanley’s stock surged by over 6% on Tuesday. Similarly, Goldman Sachs’ stock rose by over 1% on Wednesday, despite reporting a larger-than-expected 58% drop in profits.

The positive market response demonstrates the investors’ confidence in the overall outlook of these big banks despite the challenges they may have faced.

Written by staff