New York, February 4, 2026, 18:28 ET — After-hours trading
- Shares of Goldman Sachs dropped 2.7% Wednesday, slipping to about $913 in after-hours trading.
- On Tuesday, Reuters published a report revealing new documents linking Goldman’s general counsel to Jeffrey Epstein.
- Investors now expect the U.S. January jobs report on Feb. 11, after a delay.
Shares of The Goldman Sachs Group Inc (GS.N) dropped 2.7% on Wednesday, ending the session near $913.30 in after-hours trading. During the day, the stock fluctuated between $894.17 and $943.65. Trading volume hit roughly 3.6 million shares, well above the 50-day average of about 2.2 million, according to LSEG data and MarketWatch.
Goldman finds itself back in the spotlight—not just in markets. A legal issue involving its chief lawyer emerged yesterday, while the bank also revealed plans for a long-dated debt offering this week.
The blend is crucial since the stock’s been valued for steady gains — yet it’s shown volatility whenever trading shifts. Brokers, closely tied to market sentiment, often reflect any dips in confidence right away.
U.S. stocks slipped Wednesday, dragged down by concerns over AI impacting big tech and semiconductor shares, sparking doubts about the durability of the AI-driven rally. “The market is suddenly skeptical and concerned about it,” said Jed Ellerbroek, portfolio manager at Argent Capital in St. Louis. Josh Chastant of GuideStone Funds added he’s “a bit bearish on software in general.” (Reuters)
Big banks split moves. JPMorgan Chase edged up around 0.8%, but Morgan Stanley slid roughly 1.6%. Bank of America climbed about 1.8%, and Wells Fargo gained near 0.9% in late trading.
On Tuesday, Reuters revealed that Goldman’s top lawyer, Kathryn Ruemmler, accepted gifts from Jeffrey Epstein and gave him advice on handling press questions, according to emails in newly released U.S. Justice Department files. Ruemmler said in a statement that she acted as Epstein’s defense attorney and was unaware of any ongoing criminal activity. A Goldman spokesperson, Tony Fratto, noted that Epstein offered unsolicited gifts and favors to numerous business contacts. CEO David Solomon has previously described Ruemmler as “an excellent general counsel,” Reuters reported. (Reuters)
In a separate SEC filing dated Feb. 2, Goldman revealed it issued $2.5 billion in subordinated notes carrying a 5.387% fixed-rate reset, maturing in 2041. The term “subordinated” indicates these bonds fall below senior debt in claim priority during liquidation. The “fixed-rate reset” means the coupon rate can be adjusted later under the bond’s conditions. (SEC)
Goldman remains active in pursuing deals linked to the AI expansion, despite investors scrutinizing AI valuations. Sources familiar with the matter told Reuters that Nvidia-backed British AI company Nscale has brought on Goldman and JPMorgan to prep for an IPO. The timeline is still unclear, and both banks declined to comment. (Reuters)
On the macro front, a Federal Reserve survey published Monday revealed banks foresee stronger demand for business loans across various sectors this year, driven by hopes for lower interest rates and increased spending needs. According to Reuters, lenders also indicated they generally don’t anticipate further tightening of lending standards in 2026. (Reuters)
Wednesday’s economic data failed to clarify the rate outlook. The Institute for Supply Management’s services PMI stayed steady at 53.8 in January, while its prices-paid index jumped to 66.6. Last week, the Fed kept its benchmark rate steady between 3.50% and 3.75%, Reuters reported. (Reuters)
The path ahead is far from clear. Should the legal issues gain momentum or draw regulatory attention, it risks becoming a major distraction just as investors grow jittery over expensive market segments. A sharper equity decline would also put pressure on the fee streams banks rely on heavily.
Traders are eyeing the U.S. January employment report, set for release on February 11 at 8:30 a.m. ET. This data could shift rate expectations and, along with that, influence the mood around bank stocks heading into mid-month. (Bls)
