New York, February 17, 2026, 13:13 ET — Regular session
- Goldman Sachs gained roughly 1.1% by midday, outpacing a weaker overall market.
- Goldman is getting ready to scrap DEI considerations from its board-candidate requirements, the WSJ reported.
- Wednesday brings the Fed minutes, with Friday’s PCE inflation report also on traders’ radar.
Goldman Sachs tacked on 1.1% to close at $915.29 Tuesday, trading between $898.50 and $921.98 as shares of major banks climbed, despite turbulence across the wider market.
Investors rotated into financial stocks, lifting the Financial Select Sector SPDR ETF by nearly 0.9%. Tech lagged: the S&P 500 stand-in SPY edged down 0.2%, and the Nasdaq tracker QQQ dropped about 0.5%.
The drumbeat around Goldman continues, with The Wall Street Journal reporting that the bank is moving to strip out race, gender identity, sexual orientation, and other demographics from the board’s candidate criteria—a move linked to its DEI approach. Goldman wouldn’t give Reuters a comment, and Reuters said it hadn’t been able to verify the Journal’s scoop. (Reuters)
Big banks followed suit. JPMorgan Chase tacked on roughly 0.9%, Morgan Stanley edged up 0.3%, and Citigroup jumped 2.3%. Regional lenders showed some strength too—the SPDR S&P Regional Banking ETF rose around 0.2%.
Tech stocks kept weighing on sentiment, as last week’s AI-driven pullback still hung over the market after the holiday. “It’s an indiscriminate selling in all things tech,” said Art Hogan, chief market strategist at B Riley Wealth. CME’s FedWatch Tool showed traders giving a 52% chance to a 25-basis-point rate cut in June. (Reuters)
AI is making its presence felt in rates and risk sentiment too. “The conversation about AI rose to the top of market concerns … and it’s continuing,” said Peter Tuz, president of Chase Investment Counsel. Yields on the U.S. 10-year benchmark slipped around 1.7 basis points, landing near 4.039%. (Reuters)
Rate bets keep banks on edge. Chicago Fed President Austan Goolsbee signaled the Fed might greenlight “several more” rate cuts in 2026—contingent on inflation heading convincingly for 2%. Services inflation, though, he said, remains “not tamed.” (Reuters)
Beyond the U.S. session, Goldman flagged changes in risk appetite among its clients. Hedge funds snapped up a record haul of Asia equities during the week ending Feb. 13, according to a Goldman client note reviewed by Reuters. That move came even as global indices tumbled on tech-driven AI concerns. (Reuters)
Still, support for banks isn’t exactly rock-solid. A strong inflation reading or a hawkish slant in the Fed minutes could easily flip those rate-cut bets. Governance news, too, has a way of jolting both shareholders and policymakers in ways nobody quite predicts.
Now, attention shifts to the Fed’s January meeting minutes, expected Feb. 18, and then the personal consumption expenditures price index, set for Feb. 20. That’s the central bank’s favored inflation measure and could be key for the next move on rates. (Federal Reserve)
