Fed Rate Move Triggers Selloff In Big Bank Stocks

Shares of major US banks dropped after the Federal Reserve announced its latest interest rate decision on September 16, 2026. Goldman Sachs was among the names sliding, with its stock down on the session. Banks moved quickly to reprice, raising the prime rate in response to the Fed's move. The decline came alongside comments from Goldman Sachs' chief executive, who said the bank's fixed income, currencies and commodities (FICC) trading business was slightly softer in the third quarter. That combination — a rate decision investors read as unfavorable for bank margins, plus a weaker trading outlook from one of the industry's largest players — pressured the group broadly. What remains unresolved is whether the prime rate increase offsets the margin pressure investors are pricing in, or whether further Fed guidance later this year deepens the selloff in bank shares.