Good Morning! Quantum stocks jumped after reports that several quantum-computing firms are in talks to give the U.S. government equity stakes in exchange for federal funding. BNP Paribas’ chief economist said “AI has kept the economy out of a recession,” and Trump pardoned Binance founder CZ Zhao.

Goldman Sachs launched an ETF designed to mimic private-equity returns, while Blackstone’s credit assets surged 18% to reach $500 billion. London Stock Exchange is shrinking as companies opt to go public in the US, and accept deals to be taken private. And KKR co-founder Henry Kravis said private credit poses “no systemic risk.”

Plus: Goldman Sachs nears a $1 billion deal to buy talent agency Excel Sports, hedge fund assets hit a record $5 trillion with the biggest inflows since before the financial crisis, and Wall Street analysts are still bullish on gold.

Your money on autopilot? YieldClub is a new app that allows you to earn 6-14% yield on your cash. Check it out here.

SQUEEZ OF THE DAY

Wall Street’s Record Bonus Year

There’s finally some good news for Wall Street professionals. Wall Street is on track for a record year in compensation and bonuses, with the rebound in dealmaking, surging trading revenues, and a strong equity market all finally paying off.

According to New York State Comptroller Thomas DiNapoli, profits across New York Stock Exchange member firms reached $30.4 billion in the first half of 2025, up 30.7% from a year earlier.

Trading revenues jumped 73%, boosted by tariff volatility, equity market performance, and increased AI-related dealmaking. If current trends hold, total profits could top $60 billion, surpassing last year’s $49.9 billion and marking one of the most profitable years in Wall Street history.

The securities industry remains the beating heart of New York’s economy. It employs roughly 200,000 people in the city and generated $6.7 billion in local tax revenue last fiscal year, a 35% increase over 2024, accounting for more than 8% of all city tax collections. Statewide, the sector brought in an estimated $22 billion in revenue, or nearly one-fifth of total state tax receipts.

When it comes to pay, the recovery is unmistakable. The average total compensation for Wall Street professionals in 2024 rose 7.3% to $505,630, with the average bonus hitting $244,700, both record highs.

Compensation consultants at Johnson Associates are forecasting 10%–30% bonus increases for front-office staff, led by equity and fixed-income traders who capitalized on this year’s volatility.

Investment banking divisions, long hampered by the post-2022 deal drought, are finally seeing renewed activity in advisory and underwriting, aided by a rebound in M&A and a busy IPO pipeline.

Even with some job churn, preliminary data suggests a only a 3,000-job dip this year, the industry’s total headcount remains near record highs, and New York continues to lead the nation in securities employment. Roughly 62% of Wall Street staff are now back in the office full-time, compared to 57% across other industries.

Takeaway: The finance industry keeps cementing itself as New York’s economic backbone. The city may have flirted with Miami during the pandemic, but Wall Street’s still firmly home in NYC. With AI-fueled rallies, resurgent dealmaking, and packed IPO calendars, 2025 is starting to feel like the roaring ’20s we were promised, and this time, the bonus memes might actually be true.

PRESENTED BY YIELDCLUB

Higher Yields, No Lockups

Looking to earn more than 4% on your cash?

YieldClub is a simple platform that helps you earn 6–14% APY on your money while keeping full control of your funds (self-custody).

Your returns compound every 16 seconds, and the platform is built on audited protocols that already manage $10B+ in deposits.

You can earn institutional-grade yield on idle cash (without lockups, hidden fees, or confusing structures) while keeping your money ready for the next investment opportunity.

Check out YieldClub today.

Please Support Our Partners!

HEADLINES

Top Reads

• Trump administration weighs equity stakes in quantum computing firms (WSJ)

• AI is keeping the U.S. economy out of recession, economists say (YF)

• Trump pardons Binance founder Changpeng “CZ” Zhao (CNBC)

• Goldman Sachs launches ETF designed to mimic private equity returns (BB)

• Blackstone’s credit assets surge 18%, topping $500 billion (BB)

• KKR co-founder Henry Kravis says private credit poses “no systemic risk” (BB)

• Goldman Sachs nears $1B deal to buy talent agency Excel Sports (MSN)

• Elon Musk pushes for $1 trillion Tesla pay package to fund “robot army” vision (YF)

• Why Wall Street analysts are still bullish on gold (YF)

• Hedge fund assets hit $5 trillion, marking biggest inflows since before the financial crisis (BB)

• McKinsey warns banks’ profits face potential $170 billion AI hit (BB)

• Target plans to cut 1,800 corporate roles (YF)

• AI startups target senior care as next major use case (WSJ)

• Morgan Stanley hires top Bank of America talent amid deal hot streak (AFR)

• Six Wall Street bank chiefs hold the most power since the global financial crisis (BB)

• London’s stock market struggles as New York dominates global IPO listings (BB)

CAPITAL PULSE

Markets Rundown

Market Update

• Stocks closed higher ahead of today’s key CPI inflation release, the first major government data since the shutdown began.

• Defensive sectors like health care and utilities have led during the four-week shutdown, while financials have lagged amid regional-bank credit concerns.

• President Trump confirmed plans to meet with China’s President Xi on October 30 to discuss trade tensions.

• Bond yields rose, with the 10-year Treasury at 4.0%, and the U.S. dollar strengthened against major currencies.

• Oil prices climbed after new U.S. sanctions on Russian energy companies over stalled Ukraine peace efforts.

Economic Data Highlights

• Earnings season continues to show strength, with 82% of S&P 500 companies beating analyst estimates so far.

• Earnings growth is tracking near 8.7% year-over-year, led by technology, financials, and utilities.

• Tesla’s results yesterday missed profit expectations but beat on revenue, reflecting continued AI-related investment and production expansion.

• Broader market performance remains supported by resilient corporate profits and optimism around trade talks.

Reported Earnings

• T-Mobile (TMUS) – Reported steady subscriber growth and healthy churn metrics, reaffirming full-year guidance.

• Intel (INTC) – Results showed solid AI chip demand offset by softness in the PC segment.

• Ford (F) – Posted mixed results; EV margins remained under pressure despite stronger overall vehicle sales.

Earnings Today

• Procter & Gamble (PG) – Focus on pricing power and volume trends across key product categories.

• General Dynamics (GD) – Watch for defense-contract wins and aerospace order strength.

Movers & Shakers

• (+) Las Vegas Sands ($LVS) +12% after the casino company beat earnings.

• (+) American Airlines ($AAL) +6%  because the airline’s profit forecast for the rest of the year topped estimates.

• (–) Super Micro Computer ($SMCI) -9% after cutting Q1 revenue forecast on delivery delays.

Prediction Markets

• How high will the number two crypto get this year?

• Trade on real-world events with Kalshi. Use code OWS to get a $10 bonus when you trade $10.

Private Dealmaking

• Alkermes agreed to acquire Avadel Pharmaceuticals for $2.1 billion

• Redwood Materials, a battery recycling and grid storage firm, raised $350 million

• Fal.ai, a provider of media AI models for developers, raised $250 million

• Electra Therapeutics, a biotech focused on immunology and cancer, raised $183 million

• Moniepoint, a fintech, raised $90 million

• ShopMy, a curated commerce infrastructure company, raised $70 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

Read Your Mind

Description:
Drawing on over three decades of dazzling performances and psychological insight, Oz Pearlman unpacks the habits and mindsets behind his success as a world-class mentalist—and translates them into practical strategies for readers. You’ll learn how to sharpen your memory, build confident connections, interpret cues others overlook, and overcome hidden mental blocks. This book isn’t about tricks—it’s about tools you can use to influence, connect, and thrive.

Book Length: 304 pages
Release Date: October 28, 2025

Ideal For: Professionals, public speakers, connectors, anyone wanting to boost influence, confidence, and relational mastery.

“You don’t need to be a mentalist to create real, lasting change—you just need to think like one.”

DAILY VISUAL

US Stock Market Booming

In 2011, U.S. stocks made up 30% of global market value; now they’re nearly 50%.

PRESENTED BY GELT

Smart Tax Moves for Founders & Business Owners

Running a business means juggling growth, funding, and compliance, all while building the financial discipline investors expect. 

Gelt’s dedicated CPA team leads your tax strategy, supported by proprietary AI tools so you can move faster with fewer surprises:

• Dedicated CPA lead: consistent point of contact, quarterly planning, fast answers

• Built for complexity: equity planning, R&D credits, multi-state compliance, liquidity events, handled end to end

• Clarity meets automation: one platform to track deadlines, projections, filings, and opportunities

• Cost-conscious design: uncover savings early, extend runway, avoid surprise audits

From fundraising to acquisition, Gelt helps founders stay ahead on tax strategy.

Please Support Our Partners!

DAILY ACUMEN

Rejection Premium

The biggest spread in life isn’t between the talented and untalented; it’s between those who fear rejection and those who don’t.

Most people treat rejection like a loss on the balance sheet: painful, personal, and permanent. But the successful treat it like volatility, a temporary drawdown in pursuit of long-term alpha. They understand that rejection is just market feedback on an idea, a pitch, a self-belief. Nothing more.

Every “no” refines your positioning. Every closed door trims your inefficiencies. Over time, you stop trading on emotion and start compounding resilience.

Fear of rejection is what keeps you from making the trade, applying for the job, sending the message, asking for the deal. But the truth is, rejection doesn’t bankrupt you; hesitation does.

In the end, courage earns the best returns, because the greatest opportunities are always mispriced by fear.

ENLIGHTENMENT

Short Squeez Picks

• A psychologist on the 1 phrase she’d never use to comfort someone

• Steve Jobs on the difference between success and dreaming

• How leaders can spot good or bad managers

• How to master career reinvention in 3 phases

• The one trait that makes you a good manager

MEME-A-PALOOZA

Memes of the Day

📣 Partner With Us: Get in front of an audience of over 1 million finance professionals, business leaders, and policy influencers. Submit a partnership inquiry.

📈 Grow With Us: Work directly with the Overheard on Wall Street team to scale your finance brand. Schedule your free consult.

🔒 Short Squeez Premium – Insiders: Access exclusive content, including investment analysis, wellness features, career tools, and our full recruiting resource library. Upgrade to Premium. 

🧢 Wall Street Shop: Explore our collection of finance-themed apparel and merchandise. Visit the shop.

📬 Deals Newsletter – Buysiders: A curated roundup of major M&A, private equity, and VC activity. Plus access to private deal flow. Subscribe here.