Goldman Sachs Stock Falls on Soft Fixed-Income Trading Warning
Goldman Sachs stock fell by 4% on Wednesday after CEO David Solomon warned investors about softer fixed-income trading and higher expenses in the third quarter. Speaking at a Barclays conference, Solomon noted that Goldman's FICC business has been weaker compared to other sectors during this period.
However, he added that overall activity levels have been very high, with equity trading remaining 'very strong'.
The CEO attributed the higher expenses to elevated client activity levels and accelerated technology investments. This early glimpse into Goldman's third-quarter performance was provided ahead of its upcoming earnings report.
Solomon's cautionary tone about fixed-income performance contrasts with the strength in equity markets during the quarter, suggesting uneven performance across Goldman's trading divisions.