New York, Feb 28, 2026, 11:29 (EST) — The market is closed.
- Goldman shares slumped sharply Friday, falling alongside declines across the broader financial and private-credit sectors.
- Renewed jitters over lending standards, along with persistent inflation, have once more delayed hopes for rate cuts.
- Monday brings a sharp focus on U.S. jobs data, with investors also scanning for fresh signs of credit market strain.
Goldman Sachs Group Inc (GS) tumbled 7.47% Friday, ending the session at $859.57 as a late-month rout that started in software extended to banks and private-credit names. The stock kicked off the day at $912, slipped as low as $854.15, and touched $916.25 on the high end. Roughly 5.55 million shares traded hands, Investing.com data showed. Investing.com
The decline is hitting home now, with the “AI disruption” argument moving past just chip stocks and software. The fallout’s spreading across balance-sheet names—brokers, lenders—and Goldman finds itself in the thick of it, carrying exposure both as a trading outfit and as an alternatives shop.
Wall Street finished in the red Friday, weighed down by losses in financials and tech—a rough session that, as one strategist put it, “reminds us there are still some cracks out there.” Ryan Detrick, chief market strategist at Carson Group, flagged hotter inflation numbers as another pressure point, adding they “raise the risk that rate cuts get pushed back again.” Reuters
Financial stocks took another blow after UK mortgage lender Market Financial Solutions collapsed, sparking fresh scrutiny on lending practices and how certain loans get financed or rolled over. Administrators, referencing court filings, flagged risks of “double pledging” collateral and pointed to a possible 930 million pound ($1.25 billion) gap, according to Reuters. Reuters
Inflation numbers disappointed. The U.S. Producer Price Index came in hotter than forecast, stoking bets that the Federal Reserve will stick to its current path and hold off on rate cuts. Economists flagged the likelihood of no move in March. “Given still-buoyant core inflation … we expect the Fed to remain on pause,” said Ben Ayers, senior economist at Nationwide. And the Fed’s favored inflation measure—the January PCE report—has been pushed back to March 13. Reuters
Goldman grabbed attention during the market swings, sending a letter to investors—seen by Reuters—highlighting its GS Credit private-credit fund’s lower redemption rate: 3.5% for the fourth quarter, compared to more than 5% for its peers. December’s inflows? Up 11% over the average for the year. As for risks, Goldman noted that enterprise software credit accounted for roughly 15.5% of its exposure at the end of Q3, cautioning, “We do not underestimate the risk of AI disruption.” Reuters
Private credit, a direct-lending market that now hovers near $2 trillion, faces new jitters: rapid AI uptake could erode segments of the software industry, raising concerns about borrowers’ capacity to meet payments. This storyline has hit alternative asset managers heavily exposed to private credit, keeping pressure on the sector’s stocks.
Goldman’s stock now faces fresh questions: does Friday’s risk-off mood linger, or fade? Persistent widening in credit spreads, coupled with investor caution over fund withdrawals, could shift trader attention squarely to private-market valuations and the pace of fundraising—regardless of how the bank’s core trading or advisory arms perform.
Still, things can flip quickly. Should the turmoil at UK mortgage lenders remain isolated and inflation numbers come in quieter, banks might catch a break. That could set the stage for stability in the sector, following a jarring end-of-month shakeout.
Investors heading into next week are eyeing continued AI-fueled swings, with moods shifting quickly between stocks seen as “winners” and others tagged “victims,” according to Kristina Hooper, chief market strategist at Man Group, speaking to Reuters. Eyes are also on the February U.S. jobs report: projections call for 60,000 jobs added, following January’s 130,000. Traders are weighing those numbers as they try to gauge the Fed’s next move. Reuters
Friday brings the U.S. jobs numbers for February, set for release March 6 at 8:30 a.m. ET—watch for this one to jolt rate outlooks and, just as fast, shift sentiment around Goldman Sachs and the major banks once trading resumes. bls.gov
