Goldman Sachs opened Wall Street’s first‑quarter earnings season with a mixed report that laid bare the fallout from the Iran war. Chief executive David Solomon called the geopolitical backdrop “very complex,” and the bank disclosed a $5.6 billion profit overall, roughly 20% higher than a year earlier. Yet shares slipped significantly 4% in pre‑market trading as deal pipelines stalled.

Clients have shown waning appetite for the large‑scale transactions that fuel investment‑banking revenue—initial public offerings, mergers and acquisitions—according to the bank’s internal surveys. While volatility in oil and commodities generated billions in trading fees, those gains fell short of internal forecasts. Consequently, the earnings mix tilted toward market‑making activities rather than the fee‑driven deal flow that usually powers Wall Street’s profit engine.

Investors remain cautiously optimistic; the broader S&P 500 is on track for about 13% year‑over‑year earnings growth, marking a sixth straight quarter of double‑digit expansion. Still, analysts will probe upcoming reports from JPMorgan Chase, PepsiCo and Netflix for signs of further pressure on corporate finance activity. Goldman’s results signal that geopolitical risk is already reshaping revenue streams across the sector.