Goldman Sachs shares fell 1.6% after CEO David Solomon warned of softer fixed-income trading and higher expenses, highlighting a growing divergence in Q3 performance among major Wall Street banks.
Goldman CEO warned of softer fixed-income trading and higher costs in Q3, causing shares to fall.
JPMorgan co-president said trading revenue is expected to climb mid-to-high teens in Q3.
Bank of America warned trading revenue likely to be relatively flat due to a drop in fixed-income trading.
Goldman Sachs CEO David Solomon signaled a cooling in fixed-income trading for the third quarter, citing softer activity compared to robust equity markets. The bank also faces rising operational costs due to accelerated technology investments, diverging from the optimistic outlook provided by JPMorgan Chase earlier this week.
Shares declined after CEO David Solomon warned of softer fixed-income trading revenue and higher-than-expected operating expenses for the third quarter.
The sector is diverging; JPMorgan expects trading revenue to rise by mid-to-high teens, while Bank of America anticipates flat revenue and Goldman Sachs reports softening in fixed-income segments.