Why Goldman Sachs Stock Sank Today

Shares of Goldman Sachs (NYSE: GS) tumbled on Thursday. The investment banking giant's stock lost 9.3% as of market close and was down as much as 9.5% earlier in the day. The decline comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) had their worst day in years.

President Trump's sweeping tariff announcement has triggered concerns about economic growth and market stability, hitting financial stocks particularly hard.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Tariff shock waves ripple through financial sector

Goldman Sachs, a global investment bank, is feeling the pressure after President Trump's announcement of far-reaching new tariffs on nearly all U.S. trading partners. The extensive package includes a 34% tax on imports from China, 20% on the European Union, and a 10% baseline tax on all countries, representing what economists are calling the most significant disruption to global trade in nearly a century.

The tariffs are now being met with retaliatory tariffs from major partners that will greatly impact the ability of U.S. companies to sell outside the country. World leaders are also openly discussing an economic future that exists outside the U.S. as its leader and central figure.

Goldman Sachs is exposed

Goldman Sachs is deeply sensitive to disruptions in international trade, and market stability and predictability is critical for its business. The bank itself has published research suggesting the tariffs could significantly slow economic growth and increase inflation, potentially creating a challenging stagflation environment. The bank's trading and investment banking revenues could face pressure if corporate activity slows and market volatility persists beyond the initial reaction.

I would exercise caution investing here until we get a clearer economic picture.

Should you invest $1,000 in Goldman Sachs Group right now?

Before you buy stock in Goldman Sachs Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Goldman Sachs Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $676,774!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 1, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.