Stock Market Sell-Off Continues As Rates Surge, Goldman Sachs Falls 8%

Stock Market Sell-Off Continues As Rates Surge, Goldman Sachs Falls 8%

Share to Linkedin The stock market plunged on Tuesday after Goldman Sachs reported disappointing quarterly earnings—continuing a trend of lackluster bank results, while surging government bond yields hit two-year highs. Bank earnings continued to disappoint as firms warned of rising expenses. Shares of Goldman Sachs plunged over 8% after the bank reported disappointing fourth-quarter earnings: Profits came in below expected, falling 13% from a year earlier. Similar to rivals JPMorgan Chase and Citigroup, Goldman also reported rising expenses which hurt their bottom line, with the bank's operating expenses surging 23% due to "significantly higher" pay for employees. Government bond yields, meanwhile, continued to post strong gains as the 2-year yield broke above 1% for the first time since February 2020, right before the pandemic sent the economy into a recession. The benchmark 10-year Treasury note also hit 1. 85%, its highest level since January 2020. Shares of Activision Blizzard, the gaming company behind the wildly successful "Call of Duty" franchise, surged over 28% after Microsoft announced a takeover. The $68. 7 billion acquisition will make Microsoft the third-largest gaming company by revenue once the deal closes. More bank earnings, including Bank of America and Morgan Stanley on Wednesday. So far,