Goldman Sachs Earnings: Dealmaking Boom Leads to Q3 Profit Surge, Beating Expectations

Goldman Sachs GS -0.37%decrease; red down pointing triangle reported Tuesday it is now on pace for its best year ever in its main investment banking and markets division, though warned it would move to cut jobs in the coming weeks.

Wall Street’s engines are gaining steam thanks to a booming stock market and growing appetite in corporate boardrooms and executive suites to pursue mergers or public offerings. Still, Chief Executive David Solomon said Tuesday the bank was being cautious about the enthusiasm.