Goldman Sachs Group Inc. has reported a strong performance for the third quarter of 2024, significantly surpassing Wall Street's earnings estimates. The financial giant's earnings per share (EPS) reached $8.40, well above the expected $6.88, with total revenue hitting $12.7 billion, exceeding the $11.7 billion consensus estimate. This robust performance was driven by standout results in several key segments, including equities sales and trading, and global banking and markets.

The company's stock reacted positively to the news, jumping nearly 3% in premarket trading to reach a new record high of $537.50. This surge in stock price reflects investor confidence in Goldman Sachs' ability to navigate the current economic landscape and capitalize on market opportunities.

In addition to Goldman Sachs, other major financial institutions such as Bank of America Corp. and Citigroup Inc. also reported strong third-quarter earnings, contributing to a broader rally in the financial sector. Bank of America reported an EPS of $0.81, beating the $0.76 consensus, while Citigroup's EPS of $1.51 surpassed the expected $1.31.

The positive earnings reports from these financial heavyweights have bolstered investor sentiment, leading to gains in major U.S. bank stocks as measured by the Financial Select Sector SPDR Fund (XLF), which rose nearly 0.7% in premarket trading. Regional banks also benefited, with the SPDR S&P Regional Banking ETF (KRE) rising 0.5%.

Overall, the strong earnings season for the financial sector underscores the resilience and adaptability of these institutions in a challenging economic environment, providing a boost to the broader market.