Goldman Sachs (GS) shares rallied sharply on Thursday, climbing as much as 4.6% to $1,095.89 before settling back to $1,088.63, a gain of $47.61 from the prior close. The move propelled the Dow Jones Industrial Average to a fresh all-time high, as a broad rotation into financial stocks gathered pace.
The Dow's price-weighted structure amplified Goldman's impact: because the index weights stocks by share price rather than market capitalization, Goldman's elevated stock price gave it outsized influence over the index's movement. The S&P 500 also edged higher, while the Nasdaq Composite slipped, weighed down by weakness in semiconductor stocks.
Financials as a sector rose 1.8%, according to Reuters, as capital flowed out of technology and into other areas. Dustin Thackeray, chief investment officer at Crewe Advisors, described chip stocks as “due for a bit of a breather.” Other major banks also advanced, with JPMorgan Chase (JPM) up 3.1% and Morgan Stanley (MS) gaining 3.6%, suggesting broad-based buying of Wall Street names after recent pressure.
SpaceX IPO Takes Center Stage
The dealmaking spotlight is firmly on SpaceX, which set its initial public offering price at $135 per share, targeting $75 billion in fresh capital and a valuation of approximately $1.75 trillion. The IPO roadshow kicked off Thursday, with a Nasdaq listing expected next week. Goldman Sachs is serving as the lead underwriter, managing and selling the shares, alongside Morgan Stanley, BofA Securities, Citigroup, and J.P. Morgan.
However, the valuation has drawn scrutiny. Tim Hatt, head of research at GSMA Intelligence, noted that the roughly 90-times-plus revenue multiple is “high by any standard,” though he acknowledged there are few clear public comparables for SpaceX. Analysts and investors have flagged the rich pricing as a potential risk.
Earnings Strength and Cautionary Notes
Goldman’s first-quarter results continue to underpin investor confidence. The firm reported earnings per common share of $17.55 and an annualized return on equity of 19.8%. Nonetheless, RBC Capital Markets analyst Gerard Cassidy warned in April that disappointment in fixed income, currencies, and commodities (FICC) trading had weighed on the stock. CEO David Solomon described investment banking activity as “incredibly robust,” but noted that IPOs and sponsor-led deals were waiting for more favorable market conditions.
Solomon also sounded a cautious note on the broader economy, warning that rising oil prices stemming from the Iran conflict could stoke inflation and alter consumer spending patterns in the second half of the year. “You’re going to see more shifts in consumer behavior,” he said.
Leadership Change and Broader Risks
Separately, Goldman announced that Gunjan Samtani, co-chairman in India and head of the India global center, will step down at the end of 2026. Ken Castelino and Balaji Sivasubramanian will take over as co-heads of the bank’s technology and operations centers in the country, where Goldman employs more than 8,000 people in Bengaluru and Hyderabad.
Despite the day’s rally, analysts caution that the bank stock surge may be a temporary relief rather than the start of a sustained uptrend. Risks include oil-driven inflation, stress in private credit markets, ongoing Middle East tensions, and questions about SpaceX’s lofty valuation. Ben Snider of Goldman Sachs Research pointed to narrow market leadership and global uncertainties as reasons for caution on U.S. equities.
