Goldman Sachs shares are down following Bank of America CEO Brian Moynihan's cautious outlook on Q3 dealmaking and trading activity. This guidance suggests a contracting capital markets fee pool, disproportionately impacting Goldman Sachs due to its heavy reliance on investment banking and market-making revenues.
Goldman Sachs (GS) shares are experiencing a significant decline after Bank of America CEO Brian Moynihan provided a cautious outlook for third-quarter sales, trading, and investment banking revenues. Moynihan's projection of flat year-over-year sales and trading revenue and a decrease in investment banking fees from Q3 2025 levels has triggered fears of a contracting capital markets fee pool. This is particularly detrimental to Goldman Sachs, which relies heavily on these revenue streams compared to universal banks with diverse retail operations. The immediate read-through is a potential for downward revisions to Goldman's near-term earnings targets, making it a short-term negative catalyst for the stock.