Goldman Sachs (GS) saw its stock plummet 5.15% in pre-market trading on Thursday, as the banking sector faces widespread pressure ahead of the upcoming earnings season. The sharp decline comes as investors grapple with concerns about first-quarter results and shifting analyst expectations.

The pre-market drop in Goldman Sachs' share price aligns with a broader trend of weakness among major US banks. JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, and Morgan Stanley all experienced significant declines, ranging from 3.1% to 4.1%. This sector-wide sell-off suggests that investors may be repositioning their portfolios in anticipation of potentially challenging first-quarter reports.

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.