Sept 10 (Reuters) - Goldman Sachs ( GS ) is set to see
its busiest week for initial public offerings since July 2021,
its CEO David Solomon said in a CNBC interview on Wednesday.
His comments come after the Swedish buy-now, pay-later
lender Klarna ( KLAR ) made its long-awaited New York debut
earlier in the day, setting the stage for more IPOs from fintech
hopefuls.
"This week, we will do more IPOs and have more IPO activity
at Goldman Sachs ( GS ) than we've had since July 2021," he said.
Rallying equity markets and bumper first-day performances
from high growth tech-focused stocks have revived investor
confidence in new issues, which had plummeted in April after
sweeping U.S. tariffs roiled global markets.
Design software firm Figma ( FIG ) and crypto exchange
Bullish's shares more than doubled on their first
trades, while space tech firm Firefly Aerospace surged nearly
56%.
In anticipation of the long-awaited recovery in dealmaking,
Wall Street banks have hired dozens of senior executives in
recent months.
"M&A activity is up about 32% year over year but bigger than
$10 billion (deals) activity is up 100%," said Solomon.
Despite a jam packed fall IPO window, some risks linger.
Inflation remains above the Federal Reserve's 2% target,
while the U.S. labor market has begun to show cracks, sparking
concerns over the perceived strength of the U.S. workforce.
"We've seen some job data that indicates that there has been
some softening," Solomon said.
The impact of tariff policy remains an overhang on the
markets, as companies and investors aim to gauge the hit to
consumers pockets from the on-again, off-again duties.
"There's no question in my mind that it's having an impact
on growth," Solomon said on the uncertainty around trade policy,
while adding that its impact is hard to quantify.