Goldman CEO Solomon Flags Softer FICC Trading and Higher Costs in Q3, Sending GS Shares Down 3.9%

Goldman Sachs CEO David Solomon warned at a Barclays conference on September 16 that the firm's fixed income, currencies, and commodities business was running slightly softer in the third quarter, and that costs were trending higher. The remarks rattled investors and sent Goldman shares down 3.9% on the day, a decline that also tracked a broad selloff in bank stocks on Federal Reserve decision day.

Solomon offered a brighter note on another front, saying Asset and Wealth Management growth was on track to outpace the firm's high-single-digit target. Goldman also participated as a buyer in the National Stock Exchange of India's $703 million anchor book, alongside GIC, HSBC, Fidelity, and Eastspring.

Separately, Goldman raised its forecast for the global server market to $1.5 trillion by 2030, implying a compound annual growth rate of 39% from 2025 to 2030, a call that lifted Dell Technologies shares more than 5% on the day. The firm also reported an $11.7 billion private equity haul and said it is targeting strategic buyers, while its Goldman Sachs Access Treasury 0-1 Year ETF, GBIL, attracted roughly $209.9 million in inflows, a 2.8% week-over-week increase in shares outstanding.

On the monetary policy front, Goldman argued ahead of the Fed's September decision that there is limited economic justification for aggressive tightening, contending that much of the inflation overshoot reflects factors that should fade. The firm expected Fed Chair Kevin Warsh to emphasize carefully assessing incoming data and said some FOMC officials would likely be reluctant to signal additional hikes after the widely expected 25 basis point move, which prediction markets placed at an 88% probability.