NEW YORK, Feb 3, 2026, 21:05 EST — Markets have closed.
- Goldman Sachs shares fell, dragged down by a legal headline and weaker U.S. market action.
- A recent regulatory filing revealed the issuance of $2.5 billion in long-dated subordinated notes.
- Traders are eyeing next week’s U.S. jobs report alongside a planned CEO appearance.
Goldman Sachs shares dipped 0.8% Tuesday following a Reuters report based on newly disclosed U.S. Department of Justice documents. The records reveal the bank’s top lawyer, Kathryn Ruemmler, accepted gifts from the late sex offender Jeffrey Epstein and advised him on managing media questions. Ruemmler responded that she acted as a defense attorney for Epstein and that the emails “have nothing to do with my work at Goldman Sachs.” The stock closed at $938.99, having traded between $919.17 and $964.35 earlier in the session. (Reuters)
Timing is key as investors grow increasingly uneasy about interest rates and the upcoming policy shift. According to Reuters, markets have been factoring in a steeper U.S. Treasury yield curve—the difference between short- and long-term rates—in anticipation of Kevin Warsh’s Federal Reserve leadership. Eric Kuby of North Star Investment Management Corp told Reuters that if the Fed cuts rates while shrinking its balance sheet, “a yield curve that is more normally positively sloped” is the expected outcome. (Reuters)
As the market remains closed until Wednesday, focus shifts to the upcoming calendar and potential follow-up on the Justice Department document release. The Bureau of Labor Statistics will drop the January Employment Situation report on Friday, February 6, at 8:30 a.m. ET. This report frequently moves bond yields and bank stocks. (Bureau of Labor Statistics)
Tuesday saw a broad selloff on Wall Street, with tech and software shares hammered amid worries over AI disruption and an upcoming earnings flood. The S&P 500 slipped 0.84%, while the Nasdaq tumbled 1.43%, according to Reuters. (Reuters)
Financial stocks showed a split picture. Morgan Stanley dropped 1.18%, Bank of America edged up 0.78%, and Goldman slipped 0.78%, per MarketWatch data. (MarketWatch)
Another trigger emerged Monday when a filing revealed Goldman priced $2.5 billion of 5.387% Fixed-Rate Reset Subordinated Notes maturing in 2041. (SEC)
Subordinated notes rank below senior debt when it comes to repayment if a company faces financial trouble. A “fixed-rate reset” means the bond’s coupon begins at a fixed rate but later adjusts according to a formula detailed in the bond’s terms.
That said, neither headline offers a straight line to earnings. Issuing debt often just reflects standard balance-sheet management, while reputational issues don’t necessarily mean added expenses—unless they trigger regulators, lawsuits, or client backlash.
The downside scenario is more complicated: a sudden spike in long-term yields could weigh on risk assets and stall deal activity, while subdued market action tends to drain trading volumes — both vital drivers for major investment banks.
The next company-specific event is set for Tuesday, February 10, when CEO David Solomon will address the UBS Financial Services Conference in Key Biscayne, Florida, at 8:00 a.m. ET, according to the company. (Goldmansachs)
