Goldman Sachs warns of rising costs and softer trading

Goldman Sachs Chief Executive Officer David Solomon cautioned on Wednesday that the bank's fixed-income trading business has softened during the third quarter compared to past quarters. Speaking at a Barclays conference, Solomon noted that while fixed income has slowed, equity trading has remained very strong.

Solomon also warned that expenses are running higher across the firm. He explained that costs are expected to climb due to heavy client activity during the quarter, alongside accelerated investments in technology.

Goldman Sachs shares fell by as much as 1.6% following the executive's remarks. The comments come as major Wall Street banks show differing expectations for the period. On Tuesday, JPMorgan Chase Co-President Doug Petno projected that trading revenue for the quarter ending in September would grow by a mid-to-high teens percentage. Meanwhile, on Monday, Bank of America CEO Brian Moynihan warned that trading revenue would likely remain relatively flat due to a decline in fixed income.