New York, February 4, 2026, 14:06 (EST) — Regular session
- Goldman Sachs shares dropped roughly 4%, underperforming other major U.S. banks in afternoon trading
- The drop comes after a Reuters report revealed emails between Goldman’s chief lawyer and Jeffrey Epstein
- With shutdown delays behind them, traders are now focused on the Feb. 5 JOLTS data, the Feb. 11 jobs report, and the Feb. 13 CPI release
Goldman Sachs shares dropped 3.7% to $904.48 in early afternoon trading, lagging behind competitors. Morgan Stanley slipped 2.1%, whereas JPMorgan Chase edged up 0.5%.
The decline followed a Reuters report revealing that Goldman’s chief legal officer, Kathryn Ruemmler, accepted gifts from the late sex offender Jeffrey Epstein and advised him on managing media questions, according to emails released by the U.S. Department of Justice. Ruemmler denied any awareness of ongoing criminal activity, while Goldman spokesperson Tony Fratto said Epstein frequently extended “unsolicited favors and gifts” to numerous business associates. 1
Headlines like that can hit hard for big banks, even if they don’t immediately affect revenue. These firms rely on trust, and once governance or reputational risks resurface, investors often react fast by selling shares.
Goldman also hit the debt markets this week. A recent filing revealed the bank issued $2.5 billion of 5.387% fixed-rate reset subordinated notes maturing in 2041 — these notes rank below other debt in a bankruptcy and typically help bolster bank capital. 2
The broader market showed mixed signals. The S&P 500 and Nasdaq slipped as concerns over a selloff in certain software and cloud stocks grew, fueled by fears that AI might disrupt existing business models. “We’re a bit bearish on software in general,” said GuideStone Funds portfolio manager Josh Chastant. The Nasdaq-tracking Invesco QQQ fell roughly 2%, while the Dow ETF DIA edged up slightly. 3
Goldman Sachs remains busy beyond the courtroom drama. According to sources cited by Reuters, Nvidia-backed UK AI startup Nscale has brought in Goldman and JPMorgan to get ready for a potential IPO. 4
Goldman is ramping up its efforts in private-market options tailored for retirement savers. T. Rowe Price revealed a deal where Goldman could invest up to $1 billion, teaming up to provide alternative investments within retirement accounts. 5
Investors remain largely in the dark about the next steps regarding the Ruemmler-Epstein reporting. The worst-case scenario? Additional documents or internal details emerge, triggering a prolonged response process and increasing the likelihood of regulatory scrutiny or client resistance.
Coming up, key macro releases will shape the market. The Bureau of Labor Statistics confirmed the delayed January employment report will drop Wednesday, Feb. 11. The January CPI follows two days later, on Friday, Feb. 13. Before those, the December JOLTS report arrives Thursday, Feb. 5. Each of these data points could shift rate expectations—and move bank stocks accordingly. 6
