Goldman Sachs (GS) saw its stock plummet 6.75% in pre-market trading on Thursday, as the banking sector faces widespread pressure ahead of the upcoming earnings season. The sharp decline aligns with a broader trend of weakness among major US banks, with JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley all experiencing significant declines ranging from 3.1% to 4.1%.

The sell-off appears to be driven by investor concerns about first-quarter results and shifting analyst expectations. Adding to the pressure on Goldman Sachs, JPMorgan recently adjusted its price target for the investment bank to $614 from $625, while maintaining an overweight rating. This adjustment, coupled with the approaching earnings season, may have contributed to investor unease.

Goldman Sachs is scheduled to report its first-quarter 2025 earnings on April 14th, with analysts expecting revenue of $14.97 billion, up 5% year-over-year, and an adjusted EPS of $12.48, an 8% increase. Despite these positive projections, the market seems to be adopting a cautious stance, possibly due to concerns about tougher comparisons in trading and M&A advisory segments against its peers. As the earnings season approaches, investors will be closely watching for any signs of strength or weakness in the banking sector's performance.