While the S&P 500 hit an all-time high, corporate dealmaking remains unusually muted. High-profile listings from OpenAI to SB Energy have been postponed amid rising interest rates and weak consumer confidence. Global M&A fell below $1tn in Q3, squeezing boutique investment banks like Evercore, whose shares dropped nearly 25%.
Big banks, however, profited from trading volatility, with New York broker-dealers reporting record $46bn profits. Goldman Sachs awarded a $500mn bonus and expects a 30% rise in investment banking fees. Starbucks is reportedly considering a $40bn acquisition of Chipotle via share swap.
The divergence between soaring equities and dwindling deals reflects risk aversion, not lack of opportunity. Analysts warn the gap will close — likely via a market correction.
Source: Financial Times Companies · Summarized by HeadlinesBriefing