Goldman Sachs reported sharply higher third-quarter earnings, a sign that lower interest rates, a stable economy and the bank’s work refocusing on Wall Street are paying off. Profit at Goldman rose 45% to $2.

Goldman Sachs' third-quarter profit beat estimates, fueled by a rebound in bond sales, stock offerings and mergers, sending its shares up more than 3% on Tuesday. It joined JPMorgan Chase, which also gained from an investment banking revival,