Goldman Sachs' Waldron Warns of Potential Market Pullback: Impact and Analysis

On November 18, 2025, at 22:08 EST (Nov19 UTC), Goldman Sachs Group President John Waldron stated during an interview at the New Economy Forum 2025 that markets are “primed for possible further declines” [4]. This comment follows a similar warning from Goldman Sachs CEO David Solomon on November4, who cautioned about potential equity market drawdowns due to elevated valuations [3]. The remarks were made after the U.S. market close, so their full impact will be reflected in November19 trading activity.

The comments have already triggered early risk-off sentiment in pre-market/early trading on November19:

• Defensive sectors (Energy: +2.01%, Utilities: +1.18%) outperformed, indicating investor rotation toward safer assets [0].
• Growth-oriented sectors (Technology: -0.55%, Consumer Cyclical: -0.94%) underperformed, consistent with concerns about market declines [0].
• A Bloomberg podcast referenced a “$1.6 Trillion Rout” in global markets, likely linked to these and similar warnings from Wall Street leaders [2].

• U.S. Indices (Nov18, pre-comment):
  S&P500 (-0.36%), NASDAQ (-0.59%), Dow Jones (-0.63%) [0].
• Sector Performance (Nov19):
  Energy (+2.01%), Utilities (+1.18%), Technology (-0.55%), Consumer Defensive (-1.62%) [0].
• Consistent Warnings:
  Goldman Sachs leadership has been signaling market concerns for weeks, with CEO David Solomon’s November4 comments about potential drawdowns [3].

• Beneficiaries:
  Defensive sectors (Energy, Utilities) and safe-haven assets are likely to see increased demand.
• At Risk:
  Growth sectors (Technology, Consumer Cyclical) and high-valuation stocks may face pressure.
• Financial Sector:
  Goldman Sachs (GS) itself could experience volatility, though its defensive positioning may insulate it partially.

1. Consistent Messaging:
   The warnings from both Waldron and Solomon indicate a sustained bearish view from Goldman Sachs leadership.
2. Risk-Off Rotation:
   The sector performance on November19 reflects early investor reaction, with a shift toward defensive assets.
3. Market Timing:
   While the comments were made post-market on November18, the full impact will be seen in November19 trading activity.
4. Valuation Concerns:
   The warnings align with broader market worries about elevated stock valuations, particularly in technology.

• Potential Pullback:
  Investors should be aware that further market declines could impact growth-oriented portfolios significantly [3].
• Defensive Positioning:
  Consider increasing exposure to defensive sectors (Energy, Utilities) or reducing exposure to high-valuation growth stocks.
• Market Sentiment:
  Monitor the VIX (fear gauge) and trading volumes for signs of increased market stress.
• Economic Data:
  Upcoming inflation and employment reports may amplify or mitigate these concerns.