Wall Street's investment banks had a rough Monday, and Goldman Sachs took it on the chin. Shares of The Goldman Sachs Group Inc. (GS) were trading lower Monday afternoon after Bank of America CEO Brian Moynihan offered some cautionary commentary on third-quarter dealmaking and trading activity, triggering a broader sell-off across the sector.

Bank of America's Outlook Sends a Chill Through Trading and Advisory Fees

The pressure on Goldman followed Moynihan's remarks at an industry conference Monday, where he warned that third-quarter sales and trading revenue will be roughly flat year-over-year. Investment banking fees, meanwhile, are projected at $1.6 billion to $1.8 billion, down from $2 billion in third-quarter 2025.

That's not a small drop. And because Goldman maintains an industry-leading exposure to institutional equity trading, fixed-income market-making and corporate underwriting, Moynihan's guidance sparked immediate read-through fears that Wall Street's capital markets fee pool is contracting faster than consensus forecasts anticipated.

Here's the thing about Goldman: unlike universal bank peers supported by massive retail deposit bases and consumer lending buffers, it relies far more heavily on investment banking and market-making revenues for the vast majority of its overall profitability. So when corporate dealmaking and underwriting go cold across the industry, it hits Goldman's bottom-line earnings power disproportionately harder. That dynamic drove swift downward revisions to its near-term earnings targets.

GS Shares Slide Monday Afternoon

GS Price Action: Goldman Sachs Group shares were down 4.19% at $985.81 at the time of publication on Monday, according to market data.