Shares of Goldman Sachs advanced 1.6% to $943.91 during Monday's session, leading gains among major investment banks. The move came as the firm outlined a base-case scenario for a significant recovery in U.S. initial public offerings in 2026, forecasting proceeds of approximately $160 billion.
Morgan Stanley also climbed 1.6%, while Bank of America edged lower. The broader financial sector lagged, with the Financial Select Sector SPDR Fund (XLF) declining 0.3%.
Goldman Sachs strategist Ben Snider anticipates around 120 IPOs raising a total of $160 billion this year, according to a report. The bank noted the forecast carries a wide range, from roughly $80 billion to nearly $200 billion, largely dependent on whether large private companies decide to list. So far in 2026, 12 companies have raised close to $5 billion via IPOs.
The bank's investment banking division, which relies heavily on underwriting and advisory fees, stands to benefit significantly from a resurgence in equity issuance. However, the firm acknowledged risks, including ongoing stock price volatility and a concentration of software companies in the IPO backlog.
Market participants are now awaiting delayed U.S. employment and inflation data due later this week for further direction. The January Consumer Price Index report, scheduled for Friday, could influence interest rate expectations and risk appetite for new issues.
In a separate filing Monday, Goldman Sachs registered to issue senior notes with a 5.25% yield maturing in 2038. Such routine financing activity typically has minimal immediate impact on the stock price.
