Goldman Sachs CEO Solomon calls software rout 'too broad' as Wall Street looks to steady investor nerves

Goldman Sachs (GS) CEO David Solomon connected Tuesday called past week's crisp sell-off successful bundle manufacture stocks "a small spot excessively broad," joining Wall Street's chorus of voices urging patience arsenic capitalist nerves frayed implicit the imaginable impacts of AI crossed the investing landscape.

"The communicative implicit the past week has been a small spot excessively broad," Solomon said astatine a UBS fiscal services league successful Key Biscayne, Fla. "There'll beryllium winners and losers, and, you know, plentifulness of companies volition pivot and bash conscionable fine," helium added.

Solomon’s comments connected Tuesday followed attempts by executives from the alternate concern manufacture to downplay these fears during net calls past week.

Shares of immoderate of Wall Street's biggest backstage wealth managers, including Apollo Global Management (APO), Ares Management (ARES), Blackstone (BX), and KKR (KKR), came nether unit past week, fixed their known vulnerability to bundle companies threatened by caller AI advancements. (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

More acute unit was felt successful the stocks of smaller, alternate plus players similar Blue Owl (OWL), whose CEO, Marc Lipschultz, offered immoderate of the astir strident disapproval of the selling connected the company's net telephone connected Feb. 5.

"For those connected the telephone that are reasoning Fortune 500 companies are going to instrumentality each their bundle and conscionable rip it retired and conscionable say, 'I'll conscionable inquire ChatGPT,' that's simply not the mode it works," Lipschultz said. "Don't instrumentality my connection for it again. We're not technologists. Take [Nvidia CEO] Jensen Huang's words for it."

At Goldman, AI-related disruptions to bundle businesses are "something that we're monitoring," Solomon added Tuesday, but helium said the bank's vulnerability to the manufacture is "insignificant" to its wide platform.

For the equilibrium of 2026, Solomon remains bullish connected the outlook for dealmaking, peculiarly wrong M&A.

“The apt result successful 2026 is we're going to person a beauteous constructive twelvemonth for superior markets, a beauteous constructive twelvemonth for M&A,” Solomon said.

Goldman enjoyed 1 of its strongest years ever for its halfway businesses of dealmaking and trading successful 2025 and entered 2026 with precocious hopes.

Through Monday, worldwide concern banking gross truthful acold this twelvemonth is up 10%, driven by M&A and enslaved underwriting volumes, according to Dealogic data.

The biggest deals for concern banking twelvemonth to day see Elon Musk's SpaceX acquiring xAI, on with monolithic enslaved deals from large tech firms Oracle (ORCL) and Google genitor institution Alphabet (GOOG), which are some readying immense investments amid the AI boom.