Goldman Sachs stock falls after CEO warns of softer trading

Major U.S. banks, including JPMorgan, Bank of America, and Citigroup, raised their prime lending rates to 7% following the Federal Reserve's quarter-point increase in the federal funds rate to 3.75%-4%. The Fed cited persistent inflation. Bank stocks fell, reflecting mixed investor sentiment. The Fed projects further rate hikes, with implications for borrowers and the broader economy.

Goldman Sachs (GS) raised $11.7 billion in new private equity commitments via its Alternatives unit, expanding its private capital platform. The firm also announced a leadership transition in its Investment Strategy Group. The fundraising highlights growth in alternative assets and institutional client demand, with investors watching for deployment rates and fee income.

Goldman Sachs CEO David Solomon reported that the firm's fixed-income, currencies, and commodities (FICC) business is expected to be softer in Q3 compared to its strong equities performance. The bank's shares fell 4% amid broader banking sector weakness. Solomon also warned of higher transaction expenses and increased technology investments, with non-compensation expenses rising by $500 million. Investment banking revenue globally declined to $21.194 billion in Q3, down from $23.765 billion a ye

Major U.S. bank stocks declined after the Federal Reserve raised interest rates to 3.75%-4.00%, citing high inflation. Bank of America (BAC) fell 2.4%, Wells Fargo (WFC) dropped 2%, and others also saw declines. Rising rates may reduce loan demand and increase credit risks for banks.

Goldman Sachs stock fell 4.1% to $936.89 after the Fed raised rates, signaling more hikes in 2026. CEO Solomon noted softer FICC trading but projected 10% earnings growth. The broader market also declined, with the Dow down 1.5%. Goldman's stock is 19% below its 52-week high.

Goldman Sachs agreed to acquire the firm behind a Bitcoin income ETF for $2.25 billion, raising questions about the fund's yield and investor motivations.