New York, Feb 12, 2026, 13:25 EST — Regular session
- GS slipped almost 4% in early afternoon, dragged down alongside the wider rout in U.S. financials.
- Friday brings U.S. CPI inflation data, and traders are on edge after rate-cut bets got shaken by the latest jobs report.
- Some bankers are seeing M&A and IPO pipelines slow down as volatility in software stocks picks up.
The Goldman Sachs Group, Inc. (GS) dropped $35.75, or 3.8%, to $908.84 around 1:15 p.m. ET Thursday. GS started the day at $958.58, surged to $968.50, then skidded to a session low of $904.62.
Goldman slid alongside other financial stocks, joining a sector-wide pullback as traders fixated on Friday’s January CPI report—a crucial read on inflation that could alter expectations for Fed rate cuts in a hurry. “It comes down to the sweet spot,” said Julia Hermann, global market strategist at New York Life Investments, referring to the tricky balance investors hope for: steady growth paired with moderating inflation. 1
AI-fueled turbulence is no longer confined to chipmakers and data centers—it’s showing up across sectors like software and even wealth management. “You’ve clearly seen that breakdown” in what used to be a “monolithic AI trade,” said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. 2
That’s a problem for Goldman: wild swings in equity prices can put valuation talks on ice, making capital markets activity tougher. Bankers point out that the software sector, still trading roughly 25% below its late-October high, has already started to gum up some M&A and IPO deals. “Everything’s down,” said Wally Cheng, who runs global technology M&A over at Morgan Stanley. Goldman CEO David Solomon, for his part, argued, “the narrative over the last week has been a little bit too broad.” 3
Goldman Sachs, according to an SEC filing, has put out $9.001 million in callable fixed-rate notes maturing in 2038, carrying a 5.125% annual coupon. The “callable” feature gives Goldman the option to redeem these early—the notes become eligible for redemption on specified dates beginning in 2028, the filing said. 4
A separate filing revealed a shareholder intends to sell 15,855 shares of Goldman, stock awarded as part of employee compensation on Feb. 11. For context, that’s a drop in the bucket compared to the approximately 300 million shares outstanding noted in that same document. 5
Even so, inflation data can flip the script fast. A strong CPI number risks driving yields up again, squeezing rate-sensitive financials. On the other hand, a cooler print might calm nerves and spark a quick rebound in risk assets.
GS and the rest of Wall Street are looking to Friday’s CPI numbers. Whatever comes out could shake up rate-cut bets before next week hits.
