Goldman Sachs stock saw a 4% increase on Thursday, following the Federal Reserve’s decision to cut interest rates by 50 basis points on Wednesday. This decision caused a significant rally in the stock market, with the Dow Jones Industrial Average hitting an all-time high and the NASDAQ also surging by 3%.
The CEO of Goldman Sachs, David Solomon, had been advocating for a 50 basis points rate cut before it became the common view among analysts. This move proved to be beneficial for the investment bank, which has recently been focusing on divesting itself of some consumer business interests. Solomon’s push for a more aggressive rate cut was based on concerns about the weakening labor market, as evidenced by falling Nonfarm Payrolls figures over the summer.
In addition to its successful bet on the Fed’s interest rate cut, Goldman Sachs has been making strategic business decisions to streamline its operations. The investment bank recently sold its loans to General Motors credit card holders to Barclays and is reportedly in talks with Apple to take over its credit card offering. These moves have been well received by the market, as Goldman refocuses on its core strengths in M&A and wealth management.
Goldman Sachs stock is now trading above $500, with an all-time high of $517.26 in sight. Support levels are at $491 and $471, with the Moving Average Convergence Divergence (MACD) indicator showing a bullish trend. The market appears optimistic about Goldman Sachs’ prospects as it exits the consumer business and hones in on its core investment banking and advisory services.
In conclusion, Goldman Sachs has emerged as a primary winner of the Fed’s interest rate cut, with CEO David Solomon’s prescient stance on the matter proving beneficial for the investment bank. As Goldman focuses on divesting consumer business interests and refocusing on core strengths, the market seems bullish on its prospects. With support levels in place and technical indicators pointing towards a potential rally, Goldman Sachs stock appears poised for further gains in the future.
