NEW YORK, February 1, 2026, 14:21 EST — The market has closed.
Goldman Sachs (GS) shares slipped Friday following Donald Trump’s pick of Kevin Warsh to head the Federal Reserve, thrusting interest rates and banking regulations back into focus. The stock ended the day down 0.5%, closing at $935.41 after fluctuating between $923.42 and $946.98. Trading volume hit roughly 1.9 million shares. (Reuters)
U.S. markets reopen Monday, with big banks facing a straightforward headache: the policy outlook is suddenly less clear. For Goldman, changes in rate forecasts can dent trading volumes, while the underwriting schedule usually moves in step with market confidence.
On Saturday, Trump claimed Warsh would easily secure Senate confirmation and might even attract some Democratic votes. Thom Tillis, however, said he would stall the process until the U.S. Department of Justice finishes its inquiry into current chair Jerome Powell, according to the report. (Reuters)
Some investors find Warsh tough to categorize — he used to lean hawkish, favoring higher rates to tackle inflation, but recently seems more aligned with Trump’s push for cuts. Peter Cardillo, chief market economist at Spartan Capital Securities, said traders are watching to see “whether or not he will be influenced by the White House.” Brian Jacobsen, chief economist at Annex Wealth Management, described him as “an independent thinker.” Bank of America CEO Brian Moynihan noted Warsh’s “background and experience are suited to the role,” while rate futures still signal a rate cut around June. (Reuters)
The nomination also shines a spotlight on bank regulation. Jeremy Kress, a University of Michigan professor, described Powell as “a moderating influence” on deregulation. Meanwhile, Gary Paulin, chief investment strategist at Northern Trust Asset Management, noted that banking reforms will become central if the Fed increasingly relies on private lenders to keep liquidity flowing smoothly through markets. (Reuters)
Goldman Sachs Asset Management announced that the board overseeing its ActiveBeta developed-markets equity ETF has approved updates to the fund’s name, ticker, and management fee, set to take effect after Feb. 4’s close. The all-in fee drops to 15 basis points (0.15%), while the ticker will switch to GSWO on the Cboe BZX Exchange, the company said. (Business Wire)
But the situation works both ways. If the confirmation battle lingers or new inflation figures boost bond yields, banks could see sharp shifts in expectations—covering everything from net interest margins, the gap between loan earnings and deposit costs, to capital requirements.
Goldman’s stock often moves with market mood swings: more volatility tends to boost trading revenue, while a lack of risk appetite can slow deal making. Monday will reveal which effect investors favor.
Friday, Feb. 6, marks the next key date, with the U.S. Department of Labor set to drop the January employment report at 8:30 a.m. ET. Traders are expected to recalibrate their rate-cut expectations as February advances. (Bls)
