Goldman Sachs Stocks Plummet on Surprise Fed Rate Hike

Goldman Sachs stock slumped by 4.1% to $936.89 in afternoon trading after the Federal Reserve's surprise decision to raise interest rates by 25 basis points for the first time since 2023.

The move sent shockwaves through bank stocks, as 16 of 18 Fed officials left the door open to at least one additional rate increase later in 2026, a more hawkish signal than many investors had anticipated.

Goldman's CEO David Solomon acknowledged that FICC trading has been 'a little softer on a relative basis,' even while highlighting strength in the equities business and projecting over 10% earnings growth on roughly 6% revenue expansion.