Goldman profit hit by weaker trading, rising expenses; shares tumble

Shares in Goldman Sachs Group fell as much as 8% Tuesday after Wall Street's premier investment bank missed quarterly profit expectations, hampered by weaker trading revenues and rising expenses.

The share decline put Goldman on course for its worst single-day showing since June 2020, shedding about $10 billion off its market valuation since Friday's close, although it recovered to trade down 6.5% towards the close.

Bank earnings in the fourth quarter have taken a hit from lower trading volumes as the Federal Reserve slowed the pace of its asset purchases after 18 months of pumping liquidity into capital markets to ease the