New York, January 23, 2026, 18:12 EST — After-hours
- Shares of Goldman Sachs dropped 3.7% on Friday, underperforming the already weak U.S. banking sector
- A filing revealed CEO David Solomon’s 2025 compensation at $47 million, largely made up of performance-based stock awards
- Investors brace for a Fed decision and a flood of major earnings reports this week
Shares of Goldman Sachs dropped 3.7% on Friday and extended losses, last trading at $918.88 in after-hours.
The Invesco KBW Bank ETF dropped 2.2%, with Morgan Stanley and JPMorgan Chase each falling roughly 2%. Regional banks came under pressure after First Citizens BancShares warned that its 2026 net interest income—the gap between loan earnings and deposit costs—would come in below analyst expectations.
Goldman revealed in an SEC filing that CEO David Solomon’s 2025 pay jumped to $47 million from $39 million. His $2 million salary stayed the same, with most of the increase coming from performance stock units—equity awards that vest if targets are hit—plus a smaller carried-interest award tied to long-term investment returns and $10.1 million in cash. The board highlighted a 57% total shareholder return in 2025, nearly $17 billion returned to common shareholders, and full-year net revenues of $58.28 billion.
The total surpassed the $43 million pay package JPMorgan approved for CEO Jamie Dimon. Solomon earned $31 million in 2023, while Goldman shares jumped 53.5% in 2025, Reuters reported.
Goldman reported a fourth-quarter profit that topped Wall Street forecasts, driven by a boost in dealmaking and trading. Investment-banking revenue climbed 25% during the quarter. The bank sounded optimistic about activity levels heading into 2026.
On Friday, the Dow dropped 0.58%, the S&P 500 held steady, and the Nasdaq climbed 0.28%, despite Intel’s 17% plunge on a gloomy forecast. “We feel pretty good about where we are today,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. Reuters
The coming week promises a real test: a Fed decision looms alongside a flood of major earnings reports, with geopolitical tensions still adding uncertainty. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Chris Galipeau from Franklin Templeton pointed to earnings as the key mover, noting the S&P 500 is trading above 22 times expected profits. Reuters
SpaceX has tapped four Wall Street banks, including Goldman Sachs, to prepare for a potential IPO in 2026, according to a source who spoke to Reuters. Such a large offering would bring hefty fees for the banks involved, though the timing remains subject to market conditions.
Goldman bumped up its gold price target for the end of 2026 to $5,400 an ounce, up from $4,900. The boost comes on the back of stronger demand from private investors and central banks in emerging markets. The forecast highlights the risk-hedging mood that’s been visible in markets this month.
The Federal Reserve’s upcoming policy meeting is set for Jan. 27-28, with the rate decision expected on Wednesday, Jan. 28. These rate moves are crucial for banks’ lending margins and influence the risk appetite driving trading and deal activity.
Goldman is set to release its first-quarter results on April 13. Up until that date, traders will be closely eyeing whether volatility boosts trading revenues or deters dealmakers.
Investors return Monday to decide if Friday’s dip in bank stocks was a brief wobble or a sign of more to come. For Goldman, the closer dates to watch are the Fed meeting on Jan. 28 and the kickoff of mega-cap tech earnings later that week.
