Stocks surge as Goldman reports huge profit

Stocks surge as Goldman reports huge profit
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The stock market surged on Wednesday, following a strong showing from Goldman Sachs in quarterly earnings and positive COVID-19 vaccine news from Moderna.

The Dow Jones Industrial Average spiked 380 points, or 1.4 percent, and the S&P 500 increased 35 points, or 1.1 percent.

Goldman Sachs announced $2.42 billion in profits for the second quarter, 65 percent higher per share than expected.

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The bank navigated deep volatility in the markets and benefited from extraordinary measures from the Federal Reserve, which pumped trillions of dollars of liquidity into the markets as the economy tanked.

“Our strong financial performance across our client franchises demonstrates the inherent benefits of our diversified business model,” CEO David Solomon said in a release.

Goldman's profits followed a strong showing from JPMorgan Chase, though Wells Fargo reported a loss.

Markets were also boosted by news that Moderna elicited a "robust" immune response in the 45 patients enrolled in its most recent COVID-19 vaccine trials.

The strong showing by Goldman Sachs highlights a discrepancy between how large financial firms on Wall Street are faring through one of the most severe economic downturns in modern history, while unemployment spikes and a slew of small businesses face bankruptcy.

Unemployment in recent months reached levels not seen since the Great Depression, but stocks have already recovered large swaths of their pandemic-induced losses. The S&P 500 has erased its losses for the year, and the tech-heavy NASDAQ has reached new highs.